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• Oct 8, 2022 | Guriya Khatun

Since March 7, there have been 14 price increases. On May 21, rates were last raised by Rs 2 per kg. Overall, the cost of CNG has increased by Rs 22.60 per kg throughout this time. 

Digital Desk: In line with the increase in the price of natural gas input, the national capital's CNG and cooking gas rates increased by Rs 3 each on Saturday.

The price of compressed natural gas (CNG) has increased by Rs 3 per kg for the first time in more than four months, while the price of piped natural gas (PNG) has increased by Rs 3 per standard cubic metre for the first time in two months.

According to information on the website of Indraprastha Gas Ltd (IGL), the company that sells CNG and piped cooking gas in the national capital and neighbouring cities, CNG in Delhi now costs Rs 78.61 per kg, up from Rs 75.61 per kg.

Since March 7, there have been 14 price increases. On May 21, rates were last raised by Rs 2 per kg. Overall, the cost of CNG has increased by Rs 22.60 per kg throughout this time. 

According to data gathered by PTI, the price of CNG has jumped by Rs 35.21 per kilogramme or 80% since April 2021.

In Delhi, the price of gas that is piped to residential kitchens, known as piped natural gas (PNG), jumped simultaneously from Rs 50.59 per standard cubic metre to Rs 53.59 per scm, according to IGL.

Since August 2021, there has been a total of 10 rate increases for PNG. Overall, costs have increased by Rs 29.93 per square metre, or over 90%.

IGL claimed that prices for CNG and PNG have also gone up in the locations where it operates, including Kanpur in Uttar Pradesh and Ajmer in Rajasthan, as well as Noida, Greater Noida, Ghaziabad, and Gurugram.

The price hike comes after the government increased the cost of natural gas by 40%, to a record-high USD 8.57 per million British thermal units, beginning on October 1.

Compressed natural gas (CNG), which is made from natural gas that is taken from beneath the earth's surface, is then used to power vehicles and is also pumped into homes' kitchens for cooking. In addition, it is utilized to produce fertiliser and electricity.

This week, the city gas provider for Mumbai and surrounding areas, Mahanagar Gas Ltd (MGL), announced increases in the prices of CNG and PNG of Rs. 6 per kg and Rs. 4 per scm, respectively.

Analysts predict that CNG prices will likely increase by Rs 8–12 per kg and PNG rates by more than Rs 6, but in installments, to cover the increase in the cost of input natural gas. Since September 2021, natural gas prices have increased by over 5 times, from USD 1.79 per mmBtu to USD 8.57 now.

The price of CNG must be increased by Rs. 4.7–4.9 per kg by city gas distribution (CGD) organizations for every increase in the USD per mmBtu gas price.

Prices vary depending on the presence of local taxes like the VAT in each city.