Indraprastha Gas to hike CNG price by over Re 1 in Delhi
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Last Updated: Tuesday, March 23, 2010, 22:39
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 customers."


First Published: Tuesday, March 23, 2010, 22:39

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