New Delhi: Indraprastha Gas Ltd, the sole
supplier of CNG to automobiles in the National Capital, on Wednesday
said price of compressed natural gas will go up by Rs 1.08 per
kg from April 1 due to levy of VAT by the Delhi government.
IGL, which had last week raised CNG price by Rs 0.50 per
kg to Rs 21.70 per kg due to rise in input cost, will pass on
the levy of value added tax (VAT) to consumer, company
Managing Director Rajesh Vedvyas told reporters here.
CNG in Delhi will cost Rs 22.78 per kg from April 1.
The Delhi government in its budget for 2010-11,
yesterday, had proposed imposition of a 5 per cent VAT on CNG,
which till now was exempted from any local levy.
"All input costs has to be passed through," he said.
Last week, CNG price in Noida/Greater Noida and Ghaziabad
was also raised by Rs 0.50 to Rs 23.50 per kg and Rs 25.50
per kg, respectively.
Vedvyas had then stated that "we are constrained to
increase the price of CNG marginally as there has been an
increase in our various operational expenses, mainly due to
the increase in minimum wages and other expenses for
operations which are aimed at providing services to our