Ahead of Maharashtra, Delhi polls, Centre & city gas companies spar over CNG price – Times of India
NEW DELHI: A cut in supply of government-controlled natural gas from legacy fields has sparked a fencing match between the oil ministry and city gas network operators who want to raise CNG prices to at least cover the higher cost of imported fuel being used to meet market demand.Government reduced legacy gas allocation for the city gas sector by 21% in October and 20% in November following a natural decline in production from old fields. This is pinching margins of companies such as Delhi-NCR's IGL, Mumbai's MGL and Adani Total Gas, which operates in Gujarat and other markets, as they are making up the shortfall with costlier gas from new fields or imported LNG (liquefied natural gas).Technically, govt doesn't control CNG or PNG prices. But, an upward revision in CNG prices, which impacts ...