CNG price hiked by Rs 2 per kg; ATF price hiked by 5.3 pc, 10th increase this year

The price of CNG in the national capital has been hiked by Rs 2 per kg, the 12th increase in rates in just over two months.

CNG in the national capital territory of Delhi now costs Rs 73.61 per kg, up from Rs 71.61 per kg, according to the information posted on the website of Indraprastha Gas Ltd (IGL) -- the firm which retails CNG and piped cooking gas in the national capital and adjoining cities.

This is the 12th increase in price since March 7.

In all, the CNG price has risen by Rs 17.6 per kg during this period. This includes a Rs 7.50 per kg hike in the month of April alone.

In the last one year, prices have increased by Rs 30.21 per kg or 60 per cent, according to data compiled by PTI.

However, the rates of gas piped to household kitchens, called piped natural gas (PNG), remain unchanged at Rs 45.86 per scm.

City gas distributors have been periodically raising prices since October last year, when domestic as well as international gas prices started to climb as economies the world over recovered from the pandemic-induced slowdown.

Prices rose by Rs 8.74 per kg in the last three months of 2021, and from January there was a steady increase of about 50 paise a kg almost every week.

The rates have gone up after the government more than doubled the price of natural gas to USD 6.1 per million British thermal unit from April 1.

Natural gas when compressed becomes CNG for use as fuel in automobiles. The same gas is piped to household kitchens and industries for cooking and other purposes.

Mahanagar Gas Limited (MGL) has priced Compressed Natural Gas (CNG) at Rs 76 per kg in Mumbai.

Prices vary from city to city depending on the incidence of local taxes such as VAT.

The increase in CNG prices follows a Rs 10 per litre hike in petrol and diesel prices in 16 days and a Rs 100 per cylinder increase in the cooking gas LPG rates.

Jet fuel prices on Monday were hiked by a steep 5.3 per cent - the tenth straight increase this year -- to an all-time high, in line with a surge in global energy prices.

The price of aviation turbine fuel (ATF) -- the fuel that helps aeroplanes fly -- was hiked by Rs 6,188.25 per kilolitre, or 5.29 per cent, to Rs 1,23,039.71 per kl (Rs 123 per litre) in the national capital, according to a price notification of state-owned fuel retailers.

This is the 10th straight increase in jet fuel prices this year.

Meanwhile, petrol and diesel prices remained unchanged for the 41st straight day after rising by a record Rs 10 per litre each.

Jet fuel prices are revised on the 1st and 16th of every month, while petrol and diesel rates are revised daily, based on equivalent rates in the international market.

Petrol and diesel prices were hiked by Rs 10 a litre between March 22 and April 6 and have remained on freeze thereafter. State-owned oil firms have offered no reason for keeping petrol and diesel prices on freeze while raising ATF rates.

Petrol costs Rs 105.41 a litre in the national capital and diesel is priced at Rs 96.67 per litre.

The increase in ATF price comes on the back of the steepest ever hike of 18.3 per cent (Rs 17,135.63 per kl) effected on March 16 and a 2 per cent (Rs 2,258.54 per kl) increase on April 1. Prices were increased by a marginal 0.2 per cent on April 16, followed by a Rs 3,649.13 per kl (3.2 per cent) hike on May 1.

ATF in Mumbai now costs Rs 1,21,847.11 per kl, while it is priced at Rs 1,27,854.60 in Kolkata and Rs 1,27,286.13 in Chennai.

Rates differ from state to state, depending on the incidence of local taxation.

Fuel rates have been increased in India because energy prices globally have risen on the back of supply concerns following Russia's invasion of Ukraine and demand returning after being hit by the pandemic. India is 85 per cent dependent on imports to meet its oil needs.

While oil prices have eased from a near 14-year high of USD 140 per barrel, it continues to trade above USD 100. On Monday, Brent - the world's most used benchmark - was trading at USD 109.76 per barrel.

To compound things, the rupee has depreciated against the US dollar, making imports costlier. It closed at an all-time low of 77.55 to a US dollar on Friday. Forex markets were closed on Monday on the account of Buddha Purnima.

Jet fuel, which makes up for almost 40 per cent of the running cost of an airline, has this year surged to new highs. ATF prices have increased every fortnight since the start of 2022. In the nine hikes beginning January 1, ATF prices have been increased by Rs 49,017.8 per kl (Rs 49 per litre) or nearly 55 per cent.