Prices of CNG set to rise in Delhi

Delhi'su00a0 got gas problems. The prices of compressed natural gas (CNG) will be hiked by Rs 5.20 in the Capital from June 7 midnight. The hike comes in the wake of the Union Cabinet giving its nod to an increase in prices across the country.

The new price of CNG would be Rs 27.10 per unit. This is the second hike in gas prices within a month. The 'substantial' hike in the prices is likely to result in an increase in auto and bus fares in Delhi, as the government panel on auto fares is also working on revising the charges.

The price rise would also impact commercial transport, especially those carrying daily consumables, which are carried from wholesale markets to retail points in CNG-driven mini-trucks and vans.

Higher gas prices will also lead to a rise in the cost of power generation and fertilisers. However, the increase in power tariff would be marginal since only 11% of the total electricity generated in the country comes from units running on gas controlled by the government and will also depend on the state regulators. So, electricity costs are unlikely to be raised in Delhi due to the gas price revision.