Green Gas Ltd also raised CNG rates on Monday by Rs 5.3 per kg in Lucknow to Rs 96.10 per kg. The company has increased PNG price by Rs 4.75 per kg and it now costs Rs 56.20 per kg in Lucknow. CNG prices have jumped 74 per cent in Delhi.
New Delhi: Along with high commercial LPG cylinder rate, the price of natural gas supplied by government owned natural gas explorer and producer GAIL has also been hiked. Natural gas prices have rallied 18 per cent to $10.5 per mmBtu in monthly revision from Monday.
New Delhi: Along with high commercial LPG cylinder rate, the price of natural gas supplied by government owned natural gas explorer and producer GAIL has also been hiked. Natural gas prices have rallied 18 per cent to $10.5 per mmBtu in monthly revision from Monday.
In tandem with the natural gas price hike, Green Gas Ltd also raised on CNG rates Monday by Rs 5.3 per kg in Lucknow to Rs 96.10 per kg. The company has increased PNG price by Rs 4.75 per kg and it now costs Rs 56.20 per kg in Lucknow.
It is worth mentioning here that CNG prices have jumped 74 per cent in Delhi and 62 per cent in Mumbai in a year and are expected to rise further.
Whole until now, cheaper domestic natural gas has helped in keeping CNG rates under check as against heavily taxed petrol and diesel for years in the country. But higher CNG rates could now mean a slowdown in the sales of gas-powered cars that have set new records in recent years.
“While there is an artificial lid on petrol prices, CNG prices are steadily rising, which may soon help close the gap between the fuels,” Economic Times quoted an executive as saying.
In August last year, domestic natural gas price, determined by a government-set formula linked to average rates at international hubs, was $1.79 per mmBtu. It increased to $2.9 last October and $6.1 this April.
Since domestic output wasn’t enough to meet the growing demand by city gas players, the government directed GAIL to import gas to meet the shortfall. City gas companies’ entire requirement is now being met by GAIL but the price charged is the blend of domestic and imported gas.
The blended rate, which varies every month based on the cost of imported gas, has risen from $8.9 in July to $10.5 in August.
