Indraprastha Gas Limited (IGL), the supplier of compressed natural gas (CNG) and piped natural gas (PNG) in the Delhi-NCR region, has announced a reduction in the price of CNG by Rs 1.53 per kilogram. As a result, the revised price of CNG in Delhi-NCR is now Rs 73.59 per kg, effective from today.
This move comes in response to the reduction in the price of domestically produced natural gas by the government, which is the main raw material used by IGL in the production of CNG. This reduction in prices is expected to benefit around 11 lakh CNG-powered vehicles in the region, as well as industrial and household consumers who use PNG.
This is the second price reduction in CNG prices by IGL in the current financial year, following a Rs 1.90 per kg reduction in prices announced in January 2022. The company has stated that it will continue to monitor the cost of natural gas and adjust prices accordingly in the future.
The reduction in CNG prices is expected to provide relief to consumers who have been dealing with high fuel prices in recent times. Additionally, it is expected to promote the use of cleaner and more sustainable energy sources, such as CNG, as a viable alternative to traditional fossil fuels.
The use of CNG as a transportation fuel has gained popularity in recent years due to its lower emissions compared to petrol and diesel. CNG is also considered a more cost-effective and eco-friendly fuel option. The reduction in CNG prices by IGL is expected to boost the adoption of CNG as a transportation fuel, which is in line with the government’s push towards cleaner and more sustainable energy sources.
Furthermore, IGL’s decision to reduce CNG prices is expected to have a positive impact on the company’s business, as it could lead to an increase in demand for CNG in the Delhi-NCR region. This move is also expected to improve IGL’s competitive position in the market, as other CNG suppliers may follow suit in reducing prices to remain competitive.
However, the reduction in CNG prices could also have an adverse effect on IGL’s revenue and profitability. The company’s financial performance could be impacted if the reduction in prices is not offset by an increase in volume sales. Therefore, it will be crucial for IGL to monitor the market conditions and adjust its pricing strategy accordingly.
In conclusion, the reduction in CNG prices by IGL is a welcome move for consumers in the Delhi-NCR region, who have been facing high fuel prices in recent times. This move is expected to boost the adoption of cleaner and more sustainable energy sources, and it could also have a positive impact on IGL’s business. However, the company will need to remain vigilant and adapt to changing market conditions to ensure sustainable growth and profitability.
