CNG price slashed by Rs 14.90 per kg, cooking gas by Rs 5 a unit

The rate cut follows oil ministry's decision to give city gas distribution firms cheaper domestic gas to meet all their needs for CNG and PNG supplies.

hidden February 07, 2014 20:30:44 IST
 CNG price slashed by Rs 14.90 per kg, cooking gas by Rs 5 a unit

New Delhi: CNG price in the national capital was today cut by a steep Rs 14.90 per kg and cooking gas piped into kitchens by Rs 5 per unit with effect from midnight tonight.

Compressed Natural Gas, or CNG, will cost Rs 35.20 per kg from Saturday as against the current rate of Rs 50.10 per kg.

Rates of piped natural gas (PNG) that households use for cooking, was cut by Rs 5 per standard cubic meters (scm) per day. This is the first reduction in fuel rates in almost six years. CNG rate was cut in March 2008 when prices were cut by 30 paise following a reduction in excise duty.

 CNG price slashed by Rs 1490 per kg cooking gas by Rs 5 a unit

CNG price cut in Delhi. AFP

However, the relief may be temporary, as the domestic natural gas prices will almost be doubled to $8-8.2 from 1 April. The rate hike may translate into a CNG price increase of Rs 10.6 per kg and PNG rates of Rs 8/scm.

PNG rate cut was for both the consumption slabs. Simultaneously, Indraprastha Gas Ltd - the firm that retails CNG and PNG in the national capital region, announced 20 percent increase in quantity in the lower consumption slab.

Consumer price of PNG to households in Delhi in the lower slab is being cut from Rs 29.50 per scm for consumption upto 30 scm in two months to Rs 24.50 per scm for consumption of up to 36 scm in two months with effect from 8 February 2014.

In the higher slab, for consumption beyond 36 scm in two months, applicable rate in Delhi would be Rs 47/scm, which was earlier Rs 52/scm beyond consumption of 30 scm in two months.

The rate cut follows oil ministry's decision to give city gas distribution firms cheaper domestic gas to meet all their needs for CNG and PNG supplies compared to the previous limit of 80 percent for most states.

As a result, CNG price in Noida, Greater Noida and Ghaziabad has been cut by Rs 16.5 per kg to Rs 40.15 per kg.

Due to differential tax structure in Uttar Pradesh, the applicable price of domestic PNG in the lower slab to households in Noida, Greater Noida and Ghaziabad would be Rs 26.20/scm upto consumption of 36 scm in two months. This has been reduced from existing Rs 31/scm for consumption upto 30 scm in two months.

In the higher slab, for consumption beyond 36 scm in two months, the rate applicable in these cities would be Rs 47.65/scm. This was earlier Rs 54/scm beyond consumption of 30 scm in two months, IGL said in a statement.

PTI

Updated Date:

also read

Europe's largest economy Germany will fall into recession in 2023: OCED
Business

Europe's largest economy Germany will fall into recession in 2023: OCED

Germany is facing soaring inflation, particularly in energy prices, after Russia cut gas supplies through the Nord Stream pipeline as tensions mount over the Ukraine war

Global markets fall sharply amid worries about rates, economy
World

Global markets fall sharply amid worries about rates, economy

Central banks in Britain, Switzerland, Turkey and Philippines have raised interest rates after the Fed hiked its key rate on Wednesday for a fifth time this year and indicated more increases were on the way

India to grow at over 7% in FY23, says chief economic advisor
Business

India to grow at over 7% in FY23, says chief economic advisor

Earlier, the economic survey released before the annual budget in January this year had estimated FY23 growth to be at 8-8.5 per cent