New Delhi: As the nation is trying to cope with the 21-day-nationwide lockdown, there is some relief for consumers of compressed natural gas (CNG) and piped natural gas (PNG) with the state-owned Indraprastha Gas Limited (IGL) announcing reduction in prices.

“This revision in price would result in a decrease of ₹3.20 per kg in the consumer prices of CNG in Delhi and ₹3.60 per kg in Noida, Greater Noida and Ghaziabad," the company said in a statement.

The revision in CNG price has been possible due to the cut in domestic natural gas price between 1 April and 30 September time period to $2.39 per million British thermal units (mmBtu)—the lowest under the new domestic gas price regime, which was introduced in 2014.

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Also, the ceiling price for gas from difficult fields such as deep water, ultra deep water and high pressure-high temperature areas has also witnessed a reduction to $5.61 per mmBtu from the earlier price of $8.43 per mmBtu.

With the price revision the customers will now pay Rs 42.0 per kg in Delhi and Rs 47.75 per kg in Noida, Greater Noida & Ghaziabad. The revised CNG price in Muzaffarnagar would be ₹56.65 per kg, in Karnal would be ₹49.85 per kg and in Rewari & Gurugram would be ₹54.15 per kg.

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As a bonanza for its domestic consumers, the consumer price of PNG to the households in Delhi has been decreased by ₹1.55 per scm from ₹30.10 per scm to Rs 28.55 per scm, while the applicable price of domestic PNG to households in Noida, Greater Noida and Ghaziabad would be ₹28.45 per scm, which has been decreased by ₹1.65 per scm from ₹30.10 per scm, according to the statement.

In Rewari, the applicable price of domestic PNG would now be ₹28.60 per scm, which has been decreased by ₹1.55 per scm. IGL is supplying PNG to over 9 lakh households in Delhi and over 4.5 lakh households in Noida, Greater Noida, Ghaziabad and Rewari.



This reduction has also been aided by a steep fall in the prices of liquefied natural gas (LNG). The price of crude oil, to which liquefied natural gas price is typically linked, has plunged. This comes at a time of global LNG prices plunging to less than $3 per million British thermal units (mmBtu) from a peak of $11.3/mmBtu in September 2018. India is the world’s third-largest oil importer and the fourth-largest buyer of liquefied natural gas (LNG).

Gas comprises about 6.2 per cent of the country’s primary energy mix, far behind the global average of 24 per cent. The government plans to increase this share to 15 per cent  by 2030. India’s gas demand is expected to be driven by the fertilizer, power, city gas distribution, and steel sectors.