The Hindu : Front Page : CNG price goes up in Delhi

Online edition of India's National Newspaper
Tuesday, Jun 06, 2006

Front Page

Front Page

CNG price goes up in Delhi

Staff Reporter

Consumers fear it will fuel auto, taxi and bus fares

NEW DELHI: Hot on the heels of the sharp increases in petrol and diesel prices announced by the Union Government, Indraprastha Gas Limited here announced an increase of Rs 1.20 per kg in the price of compressed natural gas which would cost Rs. 19.20 per kg from Tuesday.

Coming as it does along with the petrol and diesel price hikes, the rise in CNG price is bound to lead to an increase in bus, taxi and auto fares in the Capital. Also, residents fear that the burden that would be put on them would be much more than the 6.66 per cent increase in the CNG retail price.

An IGL release said the revision in CNG price had come mainly on account of an increase in overall input cost of natural gas and increased operating expenses. Said IGL Managing Director A.K.De, "The increase in the price of CNG is because of a 20 per cent increase in the input cost of natural gas, increase in taxes, duties, royalty thereof, and due to increase in the operating expenses.''

Mr. De claimed that the increase in CNG retail price would only marginally impact the per/kilometre running cost for vehicles. "For autos, the increase would be 3 paise per km, for taxis 6 paise per km, and for buses 35 paise per km, which translates to less than a paisa per passenger-km."

According to Mr. De, even at the increased price at Rs 19.20 per kg CNG in Delhi would still be the cheapest in the country.

He clarified that IGL was not revising the price of Piped Natural Gas (PNG) being supplied to domestic and commercial consumers at this point of time.

Despite the latest prices increase, CNG would still offer around 71 per cent savings towards the running cost when compared to petrol-driven vehicles at the current level of prices, Mr. De said.

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