New Delhi: Price of Compressed Natural Gas
(CNG) may be hiked by up to Rs 2 per kg in the next few days
as rupee devaluation has pushed up input cost.
City gas retailers including Indraprastha Gas Ltd, which
supplies CNG to automobiles and piped cooking gas to
households in the national capital, are likely to announce
fuel price revision over the weekend, sources privy to the
IGL had last raised CNG in Delhi by Rs 2 per kg to Rs 32
per kg from October 1.
Sources said the hike was necessitated because IGL and
other city gas firms were being forced to buy expensive
imported LNG as supplies from Reliance Industries` eastern
offshore KG-D6 gas field have dried-up due to fall in output.
Also, the rupee depreciation has made raw material --
that is, natural gas from Reliance, state-owned GAIL and
imported LNG -- even costlier.
Rupee was at about Rs 49.50 to a US dollar at the time of
last price hike and it is today close to Rs 53 to a US dollar.
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. Gas from both Reliance and ONGC is
priced at USD 4.20 per million British thermal units.
IGL contracted 0.308 million standard cubic metres per
day of gas from RIL, but following a 35 per cent 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.
Sources said companies like IGL and Mahanagar Gas Ltd in
Mumbai are buying imported liquefied natural gas (LNG), which
is priced at over USD 17 per mmBtu, to meet the shortfall.
IGL get up to 2.7 mmscmd of gas from domestic fields of
Oil and Natural Gas Corp (ONGC) and buys another 0.6 mmscmd as