CNG price hike due to court orders: Indraprastha Gas Ltd
- Priyanka Gandhi denies report on fighting polls against Modi, says her focus remains Rae Bareli and Amethi
- After Sanjay Baru, former coal secretary Parakh's book embarrasses PM; 'Singh had little political authority'
- Two yrs after townâs first-ever riots, Kosi Kalan shadow hangs large over Mathura
- Modi in TN, Jaya first time targets BJP
- Election Live: AAP candidate in Nalanda beaten up, Shazia Ilmi's rally attacked in MP
today said the CNG price hike was forced by court orders that led to cut in allocation of cheaper domestic natural gas.
Following a Gujarat High Court order, the government ordered all of domestically available natural gas for city gas projects to be equitably distributed among all the companies in the country than convert the fuel into compressed natural gas (CNG) for sale to automobiles. Prior to this, cheaper domestic gas was largely available to firms retailing CNG in Delhi and Mumbai.
Keeping in view the limited domestic availability, the government ordered that about 80 per cent of the requirement of CNG retailers be met from cheaper domestic gas and the rest to be imported.
For IGL, which is the sole retailer of CNG in national capital, the order would not have made a big difference as domestic gas made up for 77-80 per cent of its requirement. But for Mahanagar Gas Ltd, which solely relies on domestic gas for CNG retailing in Mumbai, the cut would have meant a Rs 16 per kg increase in CNG price in the city because of costlier imported LNG coming in to replace the cut in allocation.
With such a steep hike in price on horizon, Mumbai's auto rickshaw owners association approached Maharashtra High Court and got a stay on implementation of the order in the state.
"This essentially meant that our APM (cheaper domestic) gas supply was cut to implement the uniform allocation order (of Gujarat High Court that was also upheld up the Supreme Court)," IGL Managing Director Narendra Kumar said.
IGL's APM gas allocation was reduced from 23,42,000 cubic meters per day to 22,28,000 cubic meters a day. "APM gas makes up for only 72 per cent of our requirement," he said.
- Security men at every step, Shinde keeps ‘safe distance’ from voters, debunks charges
- In Beed, Modi factor dents Munde’s goodwill among Muslims
- Ambareesh campaigns for Nilekani
- Raids on Bellary moneylender yield Rs 8.74 crore cash
- MP faces Amreli villagers’ ire in campaign
- JERC approves sale of solar power at Rs 1.13 per unit