With the government cutting the price of domestic natural gas, state-run Indraprastha Gas Limited (IGL) on Sunday announced a reduction in the selling prices of compressed natural gas (CNG) and piped natural gas (PNG) in Delhi and the NCR cities of Noida, Greater Noida and Ghaziabad with effect from midnight.

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The revision in prices would result in a decrease of Rs 1.40 per kg in the consumer price of CNG in Delhi, and Rs 1.60 per kg in Noida, Greater Noida and Ghaziabad.

As per the release, CNG from Monday will cost Rs 35.45 per kg in Delhi and Rs 40.60 per kg in Noida, Greater Noida and Ghaziabad would be effective from midnight Sunday, the release said.

"This is the third price time in the last one year that prices have been reduced by IGL. The price of CNG in Delhi remains lowest in the entire country," the company said.

"With the objective to boost CNG refueling during non-peak hours, IGL will continue to offer a discount of Rs 1.50 per kg in the selling prices of CNG for filling between 12 a.m. to 5 a.m. at select outlets.

Thus, the consumer price of CNG would be Rs 33.95 per kg in Delhi and Rs 39.10 per kg in Noida, Greater Noida and Ghaziabad during 12 a.m. to 5 a.m. at the select CNG stations across the region," it added.

IGL has also announced a cut in its domestic PNG prices from Monday. The consumer price of PNG to the households in Delhi is being reduced by Re 1 per standard cubic meter from Rs 24 per scm to Rs. 23 per scm.

Owing to local taxes in Uttar Pradesh, the price of domestic PNG to households in Noida, Greater Noida and Ghaziabad would be Rs 24.35 per scm, down Rs 1.15 per scm from existing Rs 25.50 per scm.

"With the revised price, CNG would offer over 60 per cent savings towards the running cost when compared to petrol-driven vehicles at the current level of prices. When compared to diesel-driven vehicles, the economics in favour of CNG at revised price would be over 32 per cent," the statement said.

"IGL is currently catering to over 8,50,000 CNG vehicles in the capital, which include nearly 5,50,000 private cars. IGL is augmenting its CNG refueling infrastructure to meet the rapidly growing demand as a result of increased number of vehicles switching to CNG mode," it added.