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Gas prices slashed by 20 per cent throughout India
February 3, 2014, 12:09 pm
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Oil Minister Veerappa Moily on Monday announced that CNG price will be reduced by about 20 per cent (Rs 15 per kg) and piped natural gas by about Rs 5 per cubic meters.

The Oil Minister said, CNG distributor IGL and other city gas distribution firms will get cheaper domestic gas. The IGL and city gas entities will also get entire requirement of gas from domestic fields as against previous 80 per cent, added Moily.

CNG (compressed natural gas) price was hiked by a steep Rs 4.50 per kg from midnight of December 26 in Delhi. This was the second increase in rates in just three months. Also, the price of cooking gas piped to kitchens was also increased by Rs 5.15 per kg.

This year, the price of CNG has increased in Delhi by 30.6 per cent from Rs 38.35/kg at the start of the year to Rs 50.1/kg.

Indraprastha Gas Limited (IGL), the distributor of CNG in Delhi, had said strengthening of the dollar and increasing dependence on imported regasified-liquid natural gas (RLNG) that costs four times as much as domestic gas necessitated the price hikes.

But the hikes, it had said, was also made necessary by a 5 per cent reduction in the allocation of cheaper domestic gas to Delhi and the NCR following a Gujarat High Court order.

The Arvind Kejriwal-led Delhi government has been looking at legal options to affect a rollback in CNG prices, one of the first promises made by Aam Aadmi Party (AAP).

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