Indraprastha Gas Slashes CNG Prices, PNG Prices In Delhi

In national capital of India the CNG and piped cooking gas to get cheaper by Rs 6. This has been first time in two years since Indraprastha Gas decided to do a rate cut on Saturday, April 8, 2023. It was announced after a few days when the government calibrated a new pricing formula of natural gas.

Indraprastha Gas is the biggest retail supplier of natural gas and household cooking gas across the national capital of Delhi. Today during the day, the firm tweeted about the price cut and the effective date of implementation of it. "The revised retail price of CNG in Delhi would be Rs 73.59 per kg wef 6 am on 9th April 2023."

Now based on the rate cut, CNG in Delhi will cost Rs 73.59 per kg, a Rs 6 fall in price from earlier price of Rs 79.56 per kg. Along with this the household piped cooking gas also been reduced to Rs 48.59 per standard cubic metre (scm) from previous price of Rs 53.59 per scm.

As per PTI data compilated it was noted that the reduction follows an over 80% increase in prices in two years. CNG prices were hiked on 15 occasions between April 2021 and December 2022. Since April 2021, CNG prices have increased by Rs 36.16 per kg, or 83%.

CNG prices were last hiked on December 17, 2022. Similarly, PNG rates have increased by 10 times between August 7, 2021, and October 8, 2022.

In all prices have gone up by Rs 24.09 per scm, or 81%. Rates went up as energy prices internationally climbed due to geopolitical conflicts. Prices would have risen further but for the change in the way the price of natural gas - the input raw material which is converted into CNG and PNG - was changed by the government on Thursday evening.

So instead of using rates in four international gas hubs, the locally produced fuel is now benchmarked to the cost of imported crude oil subject to a cap of USD 6.5 per million British thermal unit. The pricing formula kicked in from Saturday with the oil ministry announcing a gas price of USD 7.92 per mmBtu for the remainder of the month. But due to the cap, the gas will cost only USD 6.5 to city gas retailers like IGL. This USD 6.5 per mmBtu cap price compared with USD 8.57 rates prevalent previously.

The revised prices are as given below.

CNG Prices in Delhi

PNG Prices in Delhi

The prices will be effective from tomorrow April 9, 2023 from 6 am