igl: IGL says CNG prices will remain high, may change rates every month

New Delhi: Compressed Natural Gas (CNG) consumers in Delhi-NCR (National Capital Region) are not likely to get any relief anytime soon. Indraprastha Gas Ltd. (IGLAlthough new gas allocation guidelines may result in monthly revisions, the company is considering reducing the cost of operations to alleviate the impact on consumers.
“The price of CNG depends on many factors. One of them is the market price of gas and LNG (imported gas in ships), which accounted for 20% of IGL’s sales of CNG and PNG (piped natural gas) in 2021-22. Due to the situation in Europe (Russia-Ukraine conflict) these rates are expected to remain high at the present stage. This will have an impact on CNG rates, “said Sanjay Kumar, managing director, IGL.
The price of LNG is still around $ 20 per unit, which is double the normal rate. Prices will rise further if the summer in the Western Hemisphere is unusually hot. Domestic gas prices are also expected to rise further in October.
As the limited availability of government-controlled gas increases the share of LNG and market-priced domestic gas in IGL’s portfolio, it affects retail prices, he said. “Natural gas prices are affected by an additional retail rate of Rs 4-4.50 per dollar,” he said.
He said that under the Gas Allocation Guidelines, the government-controlled GAIL would fix the price for gas supply every month after the government-controlled domestic gas, market price production from domestic sectors and consolidation of LNG. “We will now have a current account with Gail and may have to adjust prices twice a month according to our price,” he said.
“We are tightening our belts and looking to reduce costs to cope with the situation,” he said, adding that price increases are not always the first option.


Source link

Leave a Comment