CNG-PNG Price Hike Likely Soon? Know Govt’s Plan
CNG-PNG Price: Due to delays in the arrival of LPG cylinders in the country and the resulting impact on supply, many people are wondering: will PNG prices rise now? Will CNG prices also go up alongside PNG? However, Indraprastha Gas…
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CNG-PNG Price: Due to delays in the arrival of LPG cylinders in the country and the resulting impact on supply, many people are wondering: will PNG prices rise now? Will CNG prices also go up alongside PNG? However, Indraprastha Gas Limited (IGL) states that there are no significant plans to raise the price of piped natural gas (PNG) used in households at this time. If there are any price increases, they will be minimal, ensuring that customers are not heavily impacted.
Will the price of PNG rise?
According to the company’s Managing Director, K.K. Chatiwal, an average household consumes about 12 SCM (standard cubic meters) of gas each month. Even if the price rises by 1 to 1.5 rupees per SCM, the monthly expense will only increase by approximately 20 rupees. This indicates that the average consumer will not feel a significant financial strain.
Will CNG prices go up?
On the other hand, the situation with CNG is a bit different. About 50% of CNG supplies are sourced from imported RLNG, and its price is influenced by the international market. Variations and supply interruptions in this area have exerted pressure on CNG prices. The remaining gas is sourced from APM and new gas fields, where prices have also seen recent increases.
What is IGL’s stance?
At present, the company is adopting a wait-and-see approach. There is hope that a decrease in crude oil prices may help stabilize gas prices, thus negating the need for a price hike. The government is also keeping a close watch on the situation. Discussions are underway regarding tax adjustments, including changes to excise and customs duties. Currently, the excise duty stands at around 14%, and the customs duty is 2.75% on imported LNG, while VAT varies from 0% to 16% across different states. Should the tax structure be modified, customers might benefit from some relief.
Additionally, the government is actively working to accelerate the expansion of PNG connections. The Petroleum and Natural Gas Regulatory Board (PNGRB) has instructed companies to increase the number of new connections to 30,000 daily, up from the current rate of about 10,000. IGL May Increase Domestic Gas Rates Soon However, many households with PNG connections also maintain LPG connections, preventing a complete gas shift.
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