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Business News/ Industry / Energy/  IGL raises CNG, PNG prices; OMCs hike LPG prices
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IGL raises CNG, PNG prices; OMCs hike LPG prices

Gas comprises about 6.2% of India’s primary energy mix, far behind the global average of 24%. The Centre plans to raise this share to 15% by 2030. Gas demand will likely be driven by fertilizer, power, city gas distribution, and steel sectors

Indraprastha Gas Ltd retails CNG to automobiles and piped cooking gas to households in NCR. (Photo: Mint)Premium
Indraprastha Gas Ltd retails CNG to automobiles and piped cooking gas to households in NCR. (Photo: Mint)

NEW DELHI: State-run Indraprastha Gas Limited (IGL) has raised prices of compressed natural gas (CNG) and piped natural gas (PNG).

This follows an increase in domestic cooking gas prices. Effective 1 March, the price of a 14.2 kg non-subsidised Indane liquefied petroleum gas (LPG) cylinder in Delhi has been raised by Rs25 to Rs819.

“This revision in price would result in an increase of 70 paise per kg in the consumer prices of CNG in Delhi, Noida, Greater Noida, Ghaziabad, Kanpur, Fatehpur, Hamirpur, Muzzafarnagar, Shamli, Karnal, Kaithal and Rewari with effect from 6.00 am on 2nd March 2021," IGL said in statement.

Also, prices of transportation fuel have been trending higher, with petrol and diesel selling at record rates.

“IGL has also announced increase in its domestic PNG prices with effect from 2nd March 2021. The consumer price of PNG to the households in Delhi has been increased by 91 paise per scm from 27.50 per scm to Rs. 28.41 per scm," the IGL statement added.

Fuel retailers revise prices of LPG cylinders, primarily based on international benchmark rates and the US dollar and rupee exchange rate. Non-subsidised domestic cooking gas price has been raised in the backdrop of the finance ministry slashing allocation for petroleum subsidy by two-thirds to 12,995 crore for FY22.

“IGL has been maintaining continuous and uninterrupted supply of clean fuels – CNG & PNG throughout the entire lockdown period during the pandemic," the IGL statement added.

There has been a sharp jump in global energy prices after the Organization of the Petroleum Exporting Countries (Opec)-plus meeting on 3 February decided to continue with output curbs.

The cost of the Indian basket of crude, which comprises Oman, Dubai and Brent crude, was at $64.68 a barrel on 26 February. The benchmark Brent crude traded at $64.81 per barrel, and the West Texas Intermediate was at $61.65 a barrel at the time of writing this story.

Following the pandemic, prices for Indian basket of crude had plunged to $19.90 in April before recovering to $54.79 a barrel in January, data from the Petroleum Planning and Analysis Cell showed. It averaged at $56.43, $69.88 and $60.47 per barrel in FY18, FY19 and FY20, respectively.

Gas comprises about 6.2% of India’s primary energy mix, far behind the global average of 24%. The government plans to increase this share to 15% by 2030. India’s gas demand is expected to be driven by fertiliser, power, city gas distribution, and steel sectors.

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Published: 02 Mar 2021, 10:58 AM IST
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