New Delhi: The retail price of CNG and PNG have been hiked due to the Goods and Services Tax levy. In an official statement, Indraprastha Gas Limited (IGL) said that the price hike is being effected to offset the overall impact on its costs after transition to GST regime.
The price of CNG has been increased by Rs 1.11 per kg in Delhi and Rs 1.27 per kg in Noida, Greater Noida and Ghaziabad. The new consumer price of CNG in Delhi will be Rs 38.76 per kg and Rs 44.42 per kg in Noida, Greater Noida and Ghaziabad.
After the revision, the price of PNG has been hiked by Rs 0.33 per standard cubic meter (scm) to Rs 25.19 per scm for customers in Delhi. The price of PNG for custo-mers in Noida, Greater Noida and Ghaziabad would be Rs 26.73 per scm, which has been increa-sed by 36 paise per scm.
“Under the previous indirect tax regime, IGL was entitled to avail input credits against excise duty and service tax paid on certain goods and services purchased. Since natural gas has been kept outside the ambit of GST, such input tax credits which were earlier available, have been discontinued now leading to additional costs. In addition, GST has become applicable on transpor-tation charges of input natural gas being purchased post June 30, 2017, which was not the case earlier,” the IGL statement said.
IGL, however, maintained that the hike would have a marginal impact on the per km running cost of vehicles.
