New Delhi: Indraprastha Gas (IGL) has hiked CNG (compressed natural gas) prices in the Delhi to Rs 75.61 per kg. Now, CNG will cost Rs 75.61 per kg, while in Noida, Greater Noida and Ghaziabad, the price has been hiked to Rs 78.17 per kg. In Gurugram, CNG will cost Rs 83.94 per kg after the hike. This is notably the 13th increase in rates in just over two months.
The firm sees rates staying elevated in the near future due to high international prices of natural gas and the management was looking at cutting operational costs to soften the blow for consumers.
“Several factors determine CNG prices. One of them is price of natural gas from various sources, including LNG (gas imported in ships). Gas prices are expected to remain high in the foreseeable future because of the Russia-Ukraine conflict. That will impact retail CNG rates,” company MD Sanjay Kumar said.
Limited availability of government-controlled gas has forced IGL to use more LNG to meet double-digit growth in CNG and PNG (piped natural gas) demand. This has raised input cost, which is expected to go up as demand rises further.
Kumar admitted that it may not always be easy to pass on the entire cost escalation. “We are tightening our belts and looking at reducing costs to deal with the situation,” he said.
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