In the July to September quarter of 2022-23, the city gas distribution companies will get 94 per cent of their requirement compared with 85 per cent in the first quarter from domestic sources. The companies will procure the remaining from the open market.
Despite the increase in domestic allocation by the government, Indraprastha Gas Limited (IGL) is unlikely to prune prices for automobile fuel compressed natural gas (CNG) any time soon.
Reportedly, IGL has always taken a long-term view with regard to prices. When the input gas prices were hiked every month, the company took a conscious decision that to not increase the prices to maintain sustainability of CNG business.
IGL’s retail sales price for CNG stands at Rs 75.61 per kg in the National Capital Territory, lower than Mahanagar Gas Limited’s (MGL) price of Rs 80 per kg in Mumbai, and Rs 83.9 a kg of Adani Total in Ahmedabad Meanwhile, IGL’s retail price for piped natural gas stands at Rs 50.59 per scm, however, is higher than MGL’s Rs 48.5 per scm in Mumbai and its adjoining areas.