Delhiites can now pay 10-20 percent less for CNG, piped gas

If India’s gas regulator, Petroleum and Natural Gas Regulatory Board, has its way, the cost of CNG and piped natural gas could cost 10-20 percent less in New Delhi.

A joint venture of GAIL (India) Ltd, Bharat Petroleum Corp and the state government of New Delhi, IGL sells auto and cooking gas in New Delhi and adjacent areas. And thanks to the regulator, IGL will be forced to cut the price of CNG by around Rs 7 a kg and Piped Natural Gas (PNG) by Rs. 2.20 a unit in New Delhi and the National Capital Region.

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On Monday Petroleum and Natural Gas Regulatory Board (PNGRB) ordered cuts in tariffs for CNG and PNG to Delhi consumers a bid to reduce prices.PNGRB also directed the company to refund excess tariff. IGL currently charges a network tariff of Rs 104.05 per MMBTU (million British thermal Units). In addition, it also levies compression charges at Rs. 6.66 per kg for compressed natural gas (CNG). However, reports suggest that the tariff was very high compared to the extent PNGRB notified rates.

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The price of compressed natural gas (CNG) in the capital could come down by 20 percent and of piped natural gas (PNG) by 10 percent in the wake of the PNGRB order.

However, on Tuesday Indraprastha Gas Ltd approached the Delhi High Court to contest the government directive .

PNGRB’s directive had sent shares in gas utilities reeling, with IGL closing down 34 percent on Tuesday, while Gujarat Gas ended down 15 percent and Petronet LNG down 3.1 percent.