Indraprastha Gas Ltd (IGL) on Wednesday slashed the price CNG (compressed natural gas) prices by INR 2.50 per kg, or 3%, marking the first reduction in 11 months on the back of declining global prices.
From Thursday, CNG will cost INR 74.09 per kg in Delhi against INR 76.59 before the reduction. In Noida, Greater Noida and Ghaziabad, the new price will be INR 78.70 per kg compared to INR 81.20 earlier. In Gurugram, consumers will have to pay INR 80.12 for a kg of the fuel against INR 82.62 earlier.
This is the first reduction in CNG prices in Delhi-NCR this year and follows a day after similar cut by Mahanagar Gas Ltd, which serves Mumbai. IGL had raised prices four times last year, the last time by INR 1 per kg on November 23. The prices were reduced once.
The latest reduction comes on the back of recent softening of spot gas prices in the global market. Lower CNG prices will lead to reduced transportation costs for daily essentials and bus, taxi and three-wheeler fares.
International gas prices have an impact on CNG rates as city gas operators meet shortfall in cheaper domestic gas supplies by buying from the spot market.
