The Telegraph
Tuesday , February 4 , 2014
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Natural gas cheaper

M. Veerappa Moily in New Delhi on Monday. (PTI)

New Delhi, Feb. 3: Compressed natural gas and piped gas will cost considerably less, benefiting consumers in many parts of the country just months before the general elections.

CNG, used by the transport sector, will now be cheaper by around Rs 15 per kg in Delhi, or 30 per cent. At present, it costs Rs 50.10 a kg.

There will be a reduction of about Rs 5 per standard cubic metre (scm) in the price of piped gas used by households. Customers in Delhi now pay Rs 29.50 per scm up to a consumption of 30scm in two months.

The price cut will bring relief to consumers in Delhi, Ahmedabad, Sonepat, Meerut, Bareilly, Indore, Surat and Hyderabad.

“This will benefit lakhs of households consuming piped gas and several lakh vehicles consuming CNG,” oil minister M. Veerappa Moily said.

In addition, the allocation of CNG for households has been raised at the expense of non-priority users in industries such as petrochemicals, refineries, steel and small industrial consumers.

The government has decided to supply 8.32 million metric standard cubic meters per day (mmscmd) of gas to the city gas distribution sector against the allocation of 6.8mmscmd earlier.

The additional requirement of 1.92mmscmd will be met by imposing pro-rata cuts in the supply of domestic gas (excluding those from blocks under the Nelp regime) to sectors other than the priority sector.

“We are not depriving anyone of gas. But cheaper gas will be given to CNG and PNG consumers. Industrial buyers will have to buy expensive gas,” oil secretary Vivek Rae said.