New Delhi: Compressed natural gas (CNG) prices in the national capital region will be cut in line with the 8 percent drop in the rates of domestically produced natural gas, the company retailing the fuel said.
Indraprastha Gas Ltd, the sole firm that retails CNG to automobiles and piped cooking gas to households in Delhi and adjoining cities of Ghaziabad, Noida and Greater Noida, however did not give the likely cut saying it is still working on the numbers.
"The government has today announced revision in prices of domestically produced natural gas from existing USD 5.05 per million British thermal unit to USD 4.66 per mmBtu based on GCV basis, which would also result in reduction in the retail price of CNG and domestic PNG," IGL said in a statement.
IGL, it said, "is currently working out the net impact on retail prices of CNG and PNG. The revised prices of CNG and PNG to be applicable in Delhi, Noida, Greater Noida and Ghaziabad would be announced in a day or two."
Oil Ministry's pricing cell, PPAC today said domestically produced natural gas will cost USD 4.66 per million British thermal unit from April 1 to September 30 on gross calorific value basis (GCV) as opposed to USD 5.05 per mmBtu currently.
On net calorific value (NCV) basis, the rate would be USD 5.1726 or USD 5.18 as compared to USD 5.61 currently.
The new rates are as per the formula approved by the government in October last year.
This is the first reduction in price of natural gas in India. Domestic gas price was raised from USD 4.2 per mmBtu to USD 5.61 per mmBtu effective November 1.
