The price increase has been effected in Delhi, Noida, Greater Noida and Ghaziabad.
The new prices would be Rs 21.70 per kg in Delhi, Rs 23.50 per kg in Noida and Greater Noida and Rs 25.50 per kg in Ghaziabad.
The rise in CNG prices comes weeks after oil marketing companies increased prices of petrol and diesel by Rs.2.71 a litre and Rs.2.55 a litre respectively.
"We are constrained to increase the price of CNG marginally as there has been an increase in our various operational expenses, mainly due to increase in minimum wages and other expenses for operations which are aimed at providing services to our customers," said Rajesh Vedvyas, managing director of IGL.
Delhi alone has about 250,000 vehicles, including 140,000 cars using CNG as an alternative fuel. The capital's public transport system, as also taxis and autorickshaws, run on CNG.
Vedvyas said the price hike amounted to a marginal increase of 2 percent and CNG would still offer 67 percent savings towards the running cost when compared to petrol driven vehicles at the current level of prices.
"When compared to diesel fuelled vehicles the economics in favour of CNG at revised price would be 39 percent," he added.
Indraprastha Gas Limited (IGL) is a joint venture between, GAIL (India) Ltd., BPCL and the Government of National Capital Territory of Delhi.
Already battling rising food prices, Delhiites got a rude shock on Saturday as Mother Dairy, one of the biggest suppliers of milk in and around the capital, raised its price by Rs 2 per litre.
Mother Dairy said the hike was forced by an increase in the procurement prices.
As per the revised rates, a polypack of full cream milk now costs Rs 30 per litre against its existing price of Rs 28. Toned milk, which cost Rs 22 a litre, will now cost Rs 23 a litre.
"A hike is a hike, whether it is of Rs 2 or otherwise. Everything, from bus fares to vegetables and pulses have become dearer. And now milk prices have gone up too. How am I ever going to handle these escalating prices? My monthly budget has gone for a toss," Kamla Devi, a homemaker, said.
"We keep complaining but who cares? Things continue to be more expensive. Milk is a food item that all households use everyday - for some Rs 2 may seem not much, but for people like us, spending this extra amount daily matters a lot," Savitri Devi, a domestic help, said.
"Whatever be the reason, it's always the common man who suffers. Despite all parliamentary debates and promises, even common food items like milk are now more expensive and there's nothing we can do," said Raghu Prasad Sharma, an employee in a private office.
New Delhi: The price of compressed natural gas (CNG), a cleaner transport fuel, was revised upwards by 50 paise per kg from Saturday by the sole distributing agency, Indraprastha Gas Limited.
First Published: Saturday, March 20, 2010, 23:56