hindi newsBusiness There will be no difference in the rates of CNG and petrol, companies are going to rob your pocket!
IGL Price Hike: IGL said in a regulatory notice, the company gets domestic gas to meet the requirement of CNG sales volume at the price fixed by the government. But according to the information received from nodal agency GAIL (India) Limited, there has been a major reduction in domestic gas allocation to the company since October 16.
CNG Price Hike: If you also have a CNG car then this news may shock you. Yes, the price of CNG may increase in the coming time. In fact, the government has cut the supply of cheap gas to urban gas distribution companies selling CNG to vehicles by up to one-fifth. After this step of the government, the dependence of companies on expensive imported fuel will increase. To compensate for the reduction in cheap gas, companies will have to buy expensive gas. The effect of this may be that the prices of CNG supplied by them may increase.
Mahanagar Gas Limited informed the stock market about this
It is also being said that the increase in CNG prices can be postponed till the assembly elections in Maharashtra and Jharkhand. Indraprastha Gas Limited (IGL) and Mahanagar Gas Limited have informed the stock market that the supply of gas produced domestically has been cut. Gas produced domestically is available at half the rate of imported gas. IGL said in a regulatory notice, 'The company gets domestic gas to meet the requirement of CNG sales quantity at the price fixed by the government (6.5 dollars per MBTU). But according to the information received from nodal agency GAIL (India) Limited, there has been a major reduction in domestic gas allocation to the company since October 16.'
Domestic gas allocation is about 21 percent less than the previous allocation.
IGL said that its changed domestic gas allocation is about 21 percent less than the previous allocation, which will have a direct impact on its profit. IGL is in discussions with major shareholders to reduce this impact. Mahanagar Gas Limited (MGL) said that its allocation for CNG has been reduced by 20 percent compared to the previous average quarterly allocation. The company is exploring new options to meet this shortfall. Its effect could be that in the coming times, we may see a tremendous increase in the price of CNG.
Rates may increase by 5 to 5.5 rupees per kg.
Girish Kadam, Senior Vice President of rating agency ICRA, said that there has been a 20 percent reduction in gas allocation at controlled price for urban gas distribution. This will be compensated by more expensive imported LNG, which will increase the overall gas cost for this sector. He said that to maintain the contribution margin at the current level, the price of CNG will have to be increased by Rs 5 to Rs 5.5 per kg. He said, 'If this happens, the growth in CNG vehicle registration may slow down, which has been the main driver of CNG sales volume for this sector.'
The difference between the rates of petrol and CNG will reduce.
Currently, the rate of CNG in Noida, adjacent to Delhi, is Rs 79.70 per kilo. Apart from this, petrol is available at the rate of Rs 94.72 per liter. If the rate of CNG increases by 5 to 5.5 rupees in the coming time, then its rate can increase to Rs 85 per kilo. In this way, the current difference of Rs 15 between the rates of petrol and CNG can come down to Rs 10 per kilo.