After a revision in the government's natural gas pricing formula, the costs of CNG and cooking gas piped to residential kitchens in the nation's capital on Saturday were reduced by up to Rs 6, marking the first decrease in prices in two years.

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According to a tweet from Indraprastha Gas Ltd (IGL), the company that sells CNG and piped cooking gas in the city, CNG in Delhi would now cost Rs 73.59 per kg, down from Rs 79.56.

IGL states that the price of gas that is piped into residential kitchens, known as piped natural gas (PNG), has decreased to Rs 48.59 per standard cubic metre in Delhi from Rs 53.59 per scm.

The price decrease comes after a two-year price hike of more than 80 percent. There were 15 price increases for CNG between April 2021 and December 2022. According to data gathered by PTI, CNG prices have grown by Rs 36.16 per kg, or 83 percent, since April 2021.

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On December 17, 2022, CNG prices were last raised.

Similarly, PNG rates have increased by 10 times between August 7, 2021, and October 8, 2022. In all prices have gone up by Rs 24.09 per scm, or 81 per cent.

Rates increased as a result of an increase in energy costs worldwide brought on by geopolitical unrest. Without the government's Thursday evening adjustment to the price of natural gas, the input raw material used to create CNG and PNG, prices would have increased considerably more.

Hence, the locally generated fuel is now benchmarked to the cost of imported crude oil subject to a cap of $6.5 per million British thermal units rather than using prices in four international gas hubs.

The pricing formula kicked in from Saturday with the oil ministry announcing a gas price of $7.92 per mmBtu for the remainder of the month. But due to the cap, the gas will cost only $6.5 to city gas retailers like IGL.

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This $6.5 per mmBtu cap price compared with USD 8.57 rates prevalent previously.

In the Twitter post, IGL said the retail prices charged by it for CNG and PNG in the national capital "are one of the lowest in the country." "The revised retail price of PNG in Delhi would be Rs 48.59 per scm wef 9th April 2023," it said. "The revised retail price of PNG in Noida, Greater Noida & Ghaziabad would be Rs 48.46 per scm wef 9th April 2023." The revised retail price of PNG in Gurugram, Rewari, Karnal & Kaithal would be Rs.47.40 per scm.

Similarly, the revised retail price of CNG in Delhi would be Rs 73.59 per kg, Rs 77.20 in Noida, Greater Noida and Ghaziabad and Rs 82.62 per kg in Gurugram.

(With PTI Inputs)

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