CNG (compressed natural gas) price would rise Rs 8.2 to 11.72 per kg in Delhi and Mumbai once the revised nnatural gas price comes into effect from April 2014, Minister of state for petroleum Panabaaka Lakshmi informed Parliament. CNG costs Rs 41.90 per kg in Delhi, and Rs 35.95/kg in Mumbai.
The CNG price would rise by this amount assuming that the city gas distribution entity is operating entirely on domestic gas.
It may be recalled that the government decided to raise the price of domestic natural gas to around $8.4 per unit from April 2014 against $4.2 a unit now.
Indraprastha Gas – the sole CNG supplier in Delhi and its suburbs – sources 70 percent of its needs from domestic fields. Other CNG retailers in Gurgaon and Faridabad source almost all of their gas needs from domestic fields. But Mahanagar Gas in Mumbai buys almost all its gas from domestic producers.
Further, the minister said the cost of urea production
would rise $24.893 per tonne if the price of natural gas rises by $1 per unit. On power, a $1 per unit increase in gas cost would result in cost of electricity generation going up by 45 paisa per unit.
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