Indraprastha Gas Limited (IGL) has hiked CNG prices by 50 paise per kilogram in Delhi from Saturday midnight. The company has also increased CNG price by 55 paise per kg in Noida, Greater Noida and Ghaziabad.
After this hike, CNG will cost `29.80 per kg in Delhi and `33.40 per kg in Noida, Greater Noida and Ghaziabad.
“We are constrained to revise the retail price of CNG because of increase in the actual weighted average cost of gas in the current quarter,” said IGL managing director Rajesh Vedvyas.
Mr Vedvyas claimed that this increase would have marginal impact on the running cost of CNG vehicles.
He said that despite the price increase, CNG would still offer 66 per cent savings towards the running cost when compared to petrol-driven vehicles at the current prices.
When compared to diesel-driven vehicles, the economics in favour of CNG at revised price would be 21 per cent.
CNG price were last hiked on April 3 when IGL raised rates by `0.30 per kg. The hike in CNG prices comes after PSU oil marketing companies had last month hiked petrol price by `5 per litre.
Indraprastha Gas Limited is a joint venture between GAIL (India), BPCL and Delhi government.