New Delhi, Sep 30: The Indraprastha Gas Limited (IGL) on Sunday increased the prices of Compressed Natural Gas (CNG) in Delhi, Noida, Greater Noida, Ghaziabad and Rewari. The new rates will come into effect from midnight, said one of the leading natural gas distribution companies, as reported by news agency ANI.

The Indraprastha Gas Limited increased the price of CNG by Rs 1.70 per kilogram in Delhi and Rs 1.95 per kilogram in Noida, Greater Noida and Ghaziabad. Price of CNG was increases by Rs 1.80 per kilogram in Rewari. The new consumer price of CNG will be Rs 44.30 per kilogram in Delhi and Rs 51.25 per kilogram in Noida, Greater Noida and Ghaziabad. The price of CNG in Rewari will be Rs 54.05 per kilogram.

This comes a few days after the central government hiked price of natural gas by 10 per cent. According to Oil Ministry's Petroleum Planning and Analysis Cell, the price of natural gas has been hiked to USD 3.36 per million British thermal unit (mmBtu), which will come into effect from October 1. The government revises the price of natural gas after every six months, based on average rates in gas-surplus nations like the US, Russia and Canada.

The hiked prices of natural gas would boost the earnings of producers like Oil and Natural Gas Corp (ONGC) and Reliance Industries. However, the increase will lead to higher cost of CNG. The increase will mean higher raw material cost for natural gas piped to households (PNG). It would also lead to higher cost of urea and power production.

(The above story first appeared on LatestLY on Sep 30, 2018 08:38 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).