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March 5, 2012. CNG price in the national capital and adjoining towns has been increased by up to Rs.1.90 per kg, as costlier LNG was being imported to make up for fall in output from Reliance Industries gas field. CNG in Delhi will cost Rs.1.70 per kg more at Rs.35.45 per kg. IGL hiked price of CNG sold to automobiles in Noida, Greater Noida and Ghaziabad by Rs.1.90 per kg to Rs.39.80 per kg. This is the sixth increase in CNG rates this year. IGL had last raised CNG prices in Delhi by Rs.1.75 per kg to Rs.33.75 per kg from December 31. The hike had been necessitated because IGL is buying more of imported liquefied natural gas (LNG) after supplies from RIL's KG-D6 gas fields dried up. Imported fuel costs at least three times more than $ 4.20 per million British thermal unit rate fixed for domestic gas. City gas distributors like IGL are not getting any supplies from KG-D6 since September last year, after a 40 per cent output drop forced the government to cut supplies to non-priority sectors so that requirement of power and fertiliser plants can be fully met. The proportion of costly imported LNG vis-a-vis domestic gas in the overall pool of natural gas being procured for supply as CNG has risen to around 25 per cent. The increase would have minor impact on the per km running cost of vehicles.
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