CNG Likely to Cost Rs 8 More From April - The New Indian Express

CNG Likely to Cost Rs 8 More From April

Published: 14th January 2014 08:00 AM

Last Updated: 14th January 2014 01:04 PM

Auto, taxi fares, transportation cost, electricity, urea and farm prices are all set to soar as price  of compressed natural gas or (CNG) is likely to go up by a steep Rs 8 per kg from April 1.

Earlier on December 25 the government had hiked CNG price by Rs 4.50 per kg, the steepest hike in CNG price ever.

After the April 1 revision, the price of gas is expected to be in the range of $8.2 to $8.4 per million British thermal units (mBtu) as against the present price of $4.2 mBtu.

In cities like Mumbai, the $4 per mBtu hike in natural gas price will translate into an increase of `11.72 per kg, while in Delhi the rate may go up by Rs 8.2 per kg.

According to officials a $1 per mBtu increase in gas price would result in a $24.893 per tonne hike in urea production cost. This additional production cost would be the increase in subsidy the government paid on urea. The cost of electricity generation would go up by 45 paisa per unit.  ENS

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