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A new hike in CNG prices is likely to pinch consumer wallets
Indraprastha Gas Limited (IGL)(IGL) has revised the price of Compressed Natural Gas (CNG) by Rs 2 per kilogram with effect from May 21. The cost of CNG in Delhi now stands at Rs 75.61 per kg, according to an ANI report.
The price of CNG has been hiked to Rs 78.17 per Kg in Noida, Greater Noida and Ghaziabad, in Gurugram, it will cost Rs 83.94 per Kg.
“We are tightening our belts and looking at reducing costs to deal with the situation,” IGL,MD,Sanjay Kumar told the media. The 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.
“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,” Kumar explained.
The gas company apprehends no relief for CNG owners in Delhi-NCR. This is mostly due to steep international prices of natural gas.
"LNG prices are still hovering around $20 per unit, which is double the normal rate. Prices will rise further if summer is unusually warm in the western hemisphere. Domestic gas prices too are expected to rise further in October." Kumar disclosed.
The price increase is likely to hit not just private vehicle owners but also auto drivers and commercial vehicle owners as their livelihood is affected.