GAIL Gas cuts CNG, PNG prices after IGL, MGL; check revised prices here
4 min read . Updated: 09 Apr 2023, 02:17 PM IST
PremiumGAIL Gas cut the price of the gas that households received through piped natural gas, or PNG, by ₹7 per standard cubic metre in Bengaluru and Dakshin Kannada and by ₹6 per scm in other cities where the company operates
GAIL Gas Ltd, the city gas arm of the nation's largest gas firm GAIL (India) Ltd, announced a reduction of up to ₹7 in the prices of CNG and piped cooking gas. The development comes a few days after the Central government changed the pricing formula of natural gas.
"GAIL Gas Limited is also steering its pricing mechanism in line with the Government of India's guideline to pass on new domestic gas pricing benefits to its customers and has announced a substantial reduction in prices with effect from April 9, 2023," the company said.
GAIL Gas cut the price of the gas that households received through piped natural gas, or PNG, by ₹7 per standard cubic metre in Bengaluru and Dakshin Kannada and by ₹6 per scm in other cities where the company operates. Similarly, CNG price has been cut by ₹7 per kg in Karnataka and by ₹6 in other areas, the company said in a statement.
Here are the revised PNG and CNG prices
The new effective domestic PNG prices are ₹52.50 per scm in Dewas, Meerut, Sonipat, Taj Trapezium Zone, Raisen, Mirzapur, Dhanbad, Adityapur and Rourkela, and ₹51.50 per SCM for Bengaluru and Dakshin Kannada.
The new CNG price is ₹85 per kg for Meerut and Sonipat; ₹92 per kg for Dewas, Taj Trapezium Zone & Dehradun; Rs.82.50 per kg for Bengaluru & Dakshin Kannada; ₹87 per kg for Mirzapur, ₹91 per kg for Raisen, Dhanbad, Adityapur, Puri and Rourkela.
The Union Cabinet on Thursday has approved revised guidelines for domestic gas pricing, with natural gas prices set at 10 percent of the monthly average of the Indian crude basket, in a significant decision.
Addressing a press conference after a meeting of the union cabinet, Information and Broadcasting Minister Anurag Thakur said monthly notifications will be implemented to ensure stable pricing in the regime and offer adequate protection to producers against adverse market fluctuations. This follows the government revising the formula for the pricing of natural gas, which is converted into CNG for running automobiles and piped into household kitchens for cooking purposes. The revised formula and the cap or ceiling price imposed has brought down the price of natural gas to USD 6.5 per million British thermal units from USD 8.57.
"The new guidelines aim to establish a stable pricing regime for domestic gas consumers while providing sufficient protection to producers from adverse market fluctuations, along with incentives to user industries and the CGD sector. It will accelerate the expansion of CNG and PNG as a preferred fuel, and will also contribute to reducing the carbon footprint," the statement said.
After the order, on 7 April, Mahanagar Gas decreased the price of compressed natural gas (CNG) by ₹8 per kilogram to ₹79 per kilogram. Apart from this, it also reduced the piped natural gas (PNG) price by ₹5/scm to ₹49/scm.
Prior to that, Indraprastha Gas Ltd (IGL) also cut the CNG and PNG prices in Delhi. CNG in Delhi will now cost ₹73.59 per kg, down from ₹79.56, IGL has decreased CNG prices which will come into effect from 9 April. In Delhi, CNG will now cost ₹73.59 per kg while ₹77.20 per kg in Noida, Greater Noida & Ghaziabad, ₹82.62 per kg in Gurugram. With the drop in prices, the rates of gas piped to household kitchens, called piped natural gas (PNG), has been cut to ₹48.59 per standard cubic metre in Delhi from ₹53.59 per scm, IGL said.
Adani Total Gas Ltd also cut CNG price by up to ₹8.13 per kg and up to ₹5.06 reduction in piped cooking gas. PNG, excluding taxes, will now cost ₹46.84 per scm, down from ₹51.90. In Ahmedabad, it will be priced at ₹49.83 per scm against ₹53.90 previously. CNG will cost ₹72.03 per kg in Vadodara and ₹73.29 in Ahmedabad compared to ₹79.33 and ₹79.34 earlier
In a statement, the company said that for piped cooking gas, called PNG, rates have been reduced in Vadodara, Ahmedabad and other cities of Gujarat where it operates. PNG prices have been cut in Khurja in Uttar Pradesh and Faridabad and Palwal in Haryana. CNG prices have been reduced across 21 cities where it operates. These range from Vadodara in Gujarat to Cuddalore in Tamil Nadu, Udaipur in Rajasthan and Bhind in Madhya Pradesh.
Apart from these, Torrent Gas too cut CNG prices by up to ₹8.25 per kg and piped cooking gas prices by up to ₹5 following the government move to reduce input natural gas prices. Torrent Gas has licences to operate city gas networks retailing CNG to automobiles and piped natural gas, called PNG, to household kitchens in 34 districts across the country, including in Chennai and Jaipur.
(With inputs from agencies)