New Delhi: Indraprastha Gas Ltd on Friday hiked the price of Compressed Natural Gas (CNG) by Rs 1.75 per kg as rupee devaluation has pushed up input cost.
The new rates will be effective from midnight tonight. Price of CNG after this hike will be Rs 33.75 per kg in the National Capital.
"The revision in prices would result in increase of Rs 1.75 per kg in the consumer price of CNG in Delhi and Rs 2.00 per kg in the consumer price of CNG in Noida, Greater Noida and Ghaziabad," the company said in a press statement here.
The new consumer price in Delhi will be Rs 33.75 per kg, while it will be Rs 37.90 per kg in Noida, Greater Noida and Ghaziabad.
IGL had last raised CNG in Delhi by Rs 2 per kg to Rs 32 per kg from October 1.
IGL Managing Director M Ravindran said: "We have been forced to increase the retail price of CNG due to a major increase in the input cost of entire pool of natural gas being sourced by us as a result of recent appreciation of the dollar vis-a-vis the rupee and the increased dependence on imported LNG."
The rupee depreciation has made raw material, like natural gas from Reliance, GAIL and imported LNG, costlier.
The government has fixed the price of domestic gas produced by state-owned ONGC and RIL in US dollar terms and every time the rupee depreciates against the US currency, users end up paying more.
IGL contracted 0.308 million standard cubic metres per day of gas from RIL, but following a 35 percent drop in KG-D6 output, supplies to city gas projects have been cut so that demand of priority power and fertiliser sector can be met.
With Agency inputs
First Published: Friday, December 30, 2011, 12:52