CNG prices up by Re 1 per Kg in Delhi and NCR

NEW DELHI: CNG (compressed natural gas) will become costlier by Re 1 per Kg in Delhi and its neighbouring townships of Ghaziabad, Noida and Greater Noida from Tuesday.
IGL on Monday tweeted saying CNG will be revised from Rs 42 per kg to Rs 43 in Delhi. In Noida, Greater Noida and Ghaziabad, the price will be revised from Rs 47.75 a kg to Rs 48.75.
TOI had on Monday reported IGL was considering raising prices as a sharp decline in sales due to the lockdown has proven inadequate to cover fixed operational costs and additional expenses incurred to make its stations Corona-ready.
The company had cut CNG price by Rs 3.20 per kg and PNG (piped natural gas) rates by Rs 1.55 per unit from April 3. But sales had dropped 90% to 3.5 lakh Kg as the countrywide lockdown from March 25 pushed all public and private transport – except essential service vehicles –off roads. Sales have rebounded to about 30% of the pre-lockdown level in May, which is not enough to recover costs. The company requires daily sales to reach 70% of the 35 lakh Kg in the pre-lockdown period of February to recover operational expenditure.
Sources told TOI continued under-recovery on CNG would have affected the company’s Rs 1,500-crore plan to expand the clean fuel coverage, they said.
The sharp drop in sales had forced the company to shutter 250 of its 526 stations in the NCR. But the company continued to incur expenditure on paying salaries, fixed charges for power connections, maintenance of equipment and land rent. In Delhi, DDA charges land rental of Rs 1.5 crore per year and collects the annual amount in advance.
In addition, hardship incentives had to be paid to staff deployed for emergency during the lockdown employed IGL also had to spent additional money on equipping CNG station staff and creating new facilities to conform to the Corona guidelines.