Gas prices slashed: CNG, piped cooking gas prices cut by up to Rs 6 in Delhi as govt introduces new pricing formula

Gas prices slashed: In a respite to the millions of vehicle owners and households in the Capital, prices of CNG and cooking gas piped to household kitchens on Saturday were cut by up to Rs 6. 

The decision has come after the government introduced a new pricing formula of natural gas. It came as a huge relief to the public as this is the first such reduction in two years. 

After the new prices come into effect, CNG in the national capital territory of Delhi will now cost Rs 73.59 per kg, down from Rs 79.56, Indraprastha Gas Ltd (IGL) - the retailer of CNG and piped cooking gas in the city, said in a Twitter post.

Along with CNG, rates of gas piped to household kitchens, known as piped natural gas (PNG), have also been cut to Rs 48.59 per standard cubic metre in Delhi from Rs 53.59 per scm, according to IGL.

In a Twitter post, IGL said the retail prices charged by it for CNG and PNG in the national capital "are one of the lowest in the country."

"The revised retail price of PNG in Delhi would be Rs 48.59 per scm wef April 9, 2023," it said.

"The revised retail price of PNG in Noida, Greater Noida and Ghaziabad would be Rs 48.46 per scm wef April 9, 2023."

The revised retail price of PNG in Gurugram, Rewari, Karnal, and Kaithal would be Rs.47.40 per scm.

Similarly, the revised retail price of CNG in Delhi would be Rs 73.59 per kg, Rs 77.20 in Noida, Greater Noida, and Ghaziabad, and Rs 82.62 per kg in Gurugram.

In Meerut, Muzaffarnagar, Shamli, prices of PNG is Rs 51.97 per sqm. In Kanpur, Fatehpur, and Hamirpur, prices of PNG will be Rs 51.97 per scm.

In Ajmer, Pali, the revised prices of CNG will be Rs54.23 per scm. 

Torrent Gas have also reduced gas prices. It has reduced CNG prices by Rs 8.25/kg and PNG rates by Rs 5/scm.   

The reduction has come after the prices of these gases jumped 80 per cent in last two years.

Just CNG prices were hiked on 15 occasions between April 2021 and December 2022.

In April 2021, CNG prices were Rs 36.16 per kg, and rose to 83 per cent in the last couple of years.

Prices of CNG were last hiked on December 17, 2022.

Similarly, PNG rates have increased by 10 times between August 7, 2021, and October 8, 2022.

Ever since August 7, 2021, prices have gone up by Rs 24.09 per scm, or 81 per cent.

The main reason behind the soaring prices of gases was the rising energy prices internationally due to geopolitical conflicts. 

As per the new system of price control, instead of using rates in four international gas hubs, locally produced fuel is now benchmarked to the cost of imported crude oil subject to a cap of $6.5 per million British thermal unit.

The pricing formula for these gases kicked in from Saturday with the petroleum ministry announcing a gas price of $7.92 per mmBtu for the remainder of the month.

But due to the cap, the gas will cost only $6.5 to city gas retailers like IGL.

This $6.5 per mm Btu cap price compared with $8.57 rates prevalent previously.

(With inputs from PTI)