Monday, 26 December 2011

CNG prices may be Increased by Rs 2 per Kg on increase in Input Cost

Price of Compressed Natural Gas (CNG) may be hiked by up to Rs 2 per kg in the next few days as rupee devaluation has pushed up input cost.

City gas retailers including Indraprastha Gas Ltd, which supplies CNG to automobiles and piped cooking gas to households in the national capital, are likely to announce fuel price revision over the weekend, sources privy to the development said.IGL had last raised CNG in Delhi by Rs 2 per kg to Rs 32 per kg from October 1.

Sources said the hike was necessitated because IGL and other city gas firms were being forced to buy expensive imported LNG as supplies from Reliance Industries' eastern offshore KG-D6 gas field have dried-up due to fall in output.Also, the rupee depreciation has made raw material -- that is, natural gas from Reliance, state-owned GAIL and imported LNG -- even costlier.


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