News Oil & Gas

CNG prices hiked in Delhi and NCR areas. Check latest rates


Indraprastha Gas (IGL) has reportedly hiked prices of CNG prices in Delhi-NCR by Rs 1. The new rates will be effective from Thursday, November 23.

As per reports, CNG prices have been hiked to Rs 75.59 per kg from Rs Rs 74.59 in Delhi. In Noida, prices have been hiked to Rs 81.20 vs Rs 80.20 per kg while in Greater Noida, Ghaziabad and Hapur, CNG will be available for Rs 80.20 per kg. However, in Rewari, CNG prices reduced to Rs 81.20 per kg from Rs 82.20.

The Centre had earlier this year adopted a new gas pricing formula and imposed cap or ceiling price to help cut CNG and piped cooking gas prices by up to 10 per cent. The decision was taken after CNG and PNG prices jumped almost 80 per cent in one year to August 2022 due to an increase in international energy prices.

As per the new formula, natural gas produced from legacy or old fields, known as APM gas, is now being indexed to crude oil price instead of pricing it based gas prices in surplus nations such as the US, Canada and Russia.

From April 1, APM gas is being priced at 10 per cent of the price of basket of crude oil that India imports (Indian basket of crude oil). The rate such arrived at however is capped at USD 6.5 per million British thermal unit as against current gas price of USD 8.57 per mmBtu.

The price such arrived at will also have a floor of USD 4 per mmBtu.Also rates are being revised every month instead of current practice of bi-annual revision.


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