Indraprastha Gas Limited (IGL), the sole supplier of compressed natural gas (CNG) in Delhi, has slashed the selling prices of the gas by Rs 2.5 per kg across all geographical areas of its operation, effective from 6 am on March 7, 2024. The company said that the price reduction was due to a dip in gas input costs, which are linked to the Indian crude basket.
The revised selling price of CNG in Delhi will be Rs 74.09 per kg, down from Rs 76.59 per kg. This is the second time in a year that IGL has reduced the CNG prices in Delhi, after a cut of Rs 1.53 per kg in April 2023. The prices of CNG will also be reduced in Noida, Greater Noida and Ghaziabad to Rs 78.70 per kg, in Gurugram to Rs 82.62 per kg, in Rewari to Rs 83.20 per kg, in Karnal and Kaithal to Rs 82.93 per kg, in Muzaffarnagar, Meerut and Shamli to Rs 81.58 per kg, and in Ajmer, Pali and Rajasmand to Rs 84.44 per kg.
The price cut is expected to benefit over 12 lakh vehicles running on CNG in Delhi-NCR, including taxis, autorickshaws, buses and cars. IGL said that the move will also encourage more people to switch to the cleaner and greener fuel, which will help reduce vehicular pollution and improve air quality. According to IGL, CNG offers savings of up to 60% and 40% as compared to petrol and diesel respectively.
CNG is a cheaper and more environment-friendly alternative to petrol and diesel. It emits less carbon dioxide, nitrogen oxides and particulate matter than conventional fuels. It also reduces engine noise and maintenance costs. CNG is produced by compressing natural gas, which is mainly composed of methane. Natural gas is extracted from underground reservoirs or obtained as a by-product of oil production.
The government has been promoting the use of CNG as part of its vision to increase the share of natural gas in India’s energy mix from the current 6% to 15% by 2030. The government has also delinked Indian gas prices from four international hubs based in US, Canada, UK and Russia, and aligned them to the Indian crude basket, to bring them under control. The Indian crude basket is an average of Dubai-Oman sour grade crude oil and Brent sweet grade crude oil.
IGL is one of the leading city gas distribution companies in India. It supplies CNG to over 12 lakh vehicles and piped natural gas (PNG) to over 14 lakh households and over 38 thousand commercial and industrial units in Delhi and its adjoining areas. IGL also operates over 600 CNG stations across Delhi-NCR. IGL was incorporated in 1998 as a joint venture between GAIL (India) Limited, Bharat Petroleum Corporation Limited and the Government of National Capital Territory of Delhi.
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