After the rising prices of petrol and diesel burnt holes in the pockets of a common man, the continuous fall of Indian rupee is now likely to result in the increase of CNG (compressed natural gas) and PNG (piped natural gas) cost. The hike is expected to be rolled out from October 1. As per reports, the increase in prices of CNG and PNG might take place at the routine six-monthly revision in domestic natural gas prices. As per a report by TOI, the CNG and PNG cost is expected to see a hike of 14%. Unlike the diesel and petrol prices, natural gas prices are fixed after every six months.
The new prices are based on average rates in gas markets such as Canada, Russia, the US and UK. The fall of Indian Rupee is likely to increase the cost of CNG, PNG across all cities as the slide by the Rupee is making natural gases costlier for the service providers across the country.
As per reports, Delhi’s sole natural gas supplier — Indraprastha Gas Ltd (IGL) — has hiked the cost of CNG by Rs 2.89 since last April. The following is said to be because of the fall of the Rupee against the Dollar.
Commenting on the expected hike, several natural gas providers in the national capital said that they procure the gas in terms of Dollars and with Ruppe’s depreciating value the input price is rising.
Apart from Delhi, its neighbouring areas including Noida, Ghaziabad and Greater Noida faced more pressure as the tax levied by the state is said to be marginally high in comparison to the national capital.
Talking to TOI and IGL executive claimed that when it comes to running cost, CNG will be 40% cheaper than diesel and 60% cheaper than petrol.