The selling price of Compressed Natural Gas (CNG) has been increased by the Indraprastha Gas Limited (IGL) in Delhi, India by ₹2.90 per kg. Apart from Delhi, the prices have also been increased in the neighborliness Noida, Greater Noida and Ghaziabad by ₹3.30 from July 7, 2012.
BPCL and Government of Delhi on July 7, 2012 said that the revision in price has been affected as the input cost has gone up substantially since the last price revision in the month of March 2012 due to appreciation of dollar against the rupee and also due to the increased dependence on the import Spot R-LNG.
The IGL said that the increase in cost is due to a massive hike of more than 23 percent in electricity tariff. There was also a hike in the minimum wages announced by the government.
Now the new price of CNG will be ₹38.35 per KG while in Noida, Greater Noida and Ghaziabad it would cost ₹43.10 per kg. The entire public transport in Delhi runs on CNG due to which it is likely that the fares of the buses, taxis and auto rickshaws would increase. On the other hand the IGL said that the impact of the hike would be minor on per KM running cost of vehicles in Delhi.