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IGL Increases Piped Cooking Gas Price; Second Hike In Two Weeks

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 IGL Increases Piped Cooking Gas Price; Second Hike In Two Weeks
05 Aug 2022
7 min read

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News Synopsis

The cost of cooking gas delivered to kitchens of households in the capital city of Delhi and adjacent cities was increased by the equivalent of Rs 2.63 for each unit last Friday, marking the second time within just two days.

Piped cooking gas for Delhi will now cost 50.59 for a standard cubic meter as opposed to 47.96 earlier, as per Indraprastha Gas Ltd - the company that sells CNG to vehicles and pipes cooking gas to homes in the capital city and the towns that surround it. The hike is meant to "partially compensate for the rise in the cost of gas for input," IGL said in tweet. The increase is only the second increase in price in less than two weeks. The rates were last updated on July 26 by the amount of Rs 2.1 for a scm. The rise follows the directive from the government to use of imported LNG to meet the growing demand. The state-owned GAIL calculates the cost of local gas alongside imported gas before supplying city gas retailers such as IGL. Similar increase in piped cooking gases (piped natural gas or PNG) are impacted from city retailers of gas in different areas in the nation. Then, in Mumbai, Mahanagar Gas Ltd raised the CNG cost by 6 rupees per kilogram and PNG by 4 units.

"Due to the dramatic rise in the cost of gas for input We have taken the decision to recover the expense. In the process, we've raised the retail cost of CNG to the price of Rs 86 per kilogram and increased the price of domestic PNG by Rs 4 to 52.50 within and close to Mumbai," MGL said in an announcement. But, IGL is not increasing the CNG cost and it will continue to be priced at Rs 75.61 per kilogram. IGL stated that CNG for Noida, Greater Noida and Ghaziabad that are located near Delhi costs approximately 50.46 per scm. However, the price in Gurugram it will cost at 48.79 for a scm. Prices vary from state to the state based the local regulations. Natural gas serves as the primary fuel for CNG and PNG.

The domestic production of natural gas is not enough to meet the demand and India imports about 50% of its requirements through LNG, which is liquefied natural gas (LNG). As the cost of natural gas produced in India was raised by USD 6.10 for a million British thermal units over the period of six months beginning April 1, LNG rates jumped to a an all-time high following the events of Russia's military invasion of Ukraine. LNG in the spot market or market is currently priced more than USD 30. GAIL blends around 2.5-3 million cubic meters a day of LNG. This is in addition to the volumes that are available from domestic fields to city gas providers such as IGL MGL and MGL. The rate for pooling is set each month. In August, the rate pooled was US$ 10.52 per mmBtu. This is up by USD 8.95 in the month before.

 

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