Moily: CNG price cut by 15% per kg

NEW DELHI: In a relief to consumers, the government on Monday reduced CNG prices by about Rs 15 per kg and that of piped natural gas by about Rs 5 per cubic metres.

Oil Minister Veerappa Moily said that IGLBSE 8.81 % and other city gas distribution firms will get cheaper domestic gas. "IGL and city gas entities will get the entire requirement of gas from domestic fields as against previous 80 per cent," said Moily.

The CNG prices were hiked by a steep Rs 4.50 per kg on December 26.

Last week, the government raised the quota of subsidised LPG to 12 cylinders per household in a year from nine at present and also put on hold paying users the subsidy into bank accounts using Aadhaar platform.

Moily had said that raising the LPG quota will cost Rs 5,000 crore in additional subsidy annually. Households will get one cylinder extra, on top of the quota of 9 cylinders, in February and March and from April they will be entitled for 12 cylinders - one cylinder per month at subsidised rates, he said.

Last week, oil companies increased diesel price by 57 paise a litre but cut non-subsidised cooking gas rate by Rs 107 per cylinder in Delhi. The effective price hike in Mumbai is 63 paise and 50 paise in Kolkata. Oil companies have raised diesel prices by more than 16 per cent since January 17, 2013, after the government allowed retailers to raise its price in small doses every month until pump prices are aligned with market rates.