No Major Hike Expected in PNG Prices, Says IGL

Amid concerns over LPG supply delays and rising fuel costs, many households are wondering whether piped natural gas (PNG) and CNG prices are set to increase. However, according to Indraprastha Gas Limited (IGL), there is no immediate plan for a major price hike in domestic PNG.

Even if prices are revised, the company has indicated that the increase will likely be minimal, ensuring that the burden on consumers remains limited.

How Much Can PNG Prices Increase?

According to IGL’s management, an average household consumes around 12 SCM (Standard Cubic Meter) of PNG per month.

• Expected hike (if any): ₹1 to ₹1.5 per SCM
• Monthly impact: Around ₹15–₹20 increase

This means that even if prices are revised, the effect on household budgets will be marginal.

Why Are Concerns Rising About Gas Prices?

The discussion around PNG and CNG price hikes comes at a time when:

• LPG cylinder supply has faced delays in some areas
• Global energy markets remain volatile
• Import costs of gas have fluctuated

These factors have led to speculation about possible price increases.

CNG Prices: More Sensitive to Global Trends

While PNG prices are expected to remain stable, the situation is slightly different for CNG:

• Around 50% of CNG supply comes from RLNG (imported gas)
• Prices depend on international markets
• Supply disruptions can increase cost pressure

Additionally, domestic gas sources such as APM (Administered Price Mechanism) and new gas fields have also seen price adjustments recently.

Government and Tax Factors in Focus

The government is closely monitoring the situation, and discussions are underway regarding possible changes in the tax structure.

Key tax components include:

• Excise duty: Around 14%
• Custom duty on LNG imports: Approximately 2.75%
• VAT: Ranges between 0% to 16% depending on the state

If these taxes are revised, consumers may get some relief in gas prices.

Push for More PNG Connections

The Petroleum and Natural Gas Regulatory Board (PNGRB) is actively promoting wider adoption of PNG across the country.

• Target: 30,000 new PNG connections daily
• Current pace: Around 10,000 connections per day

However, despite having PNG connections, many households continue to rely on LPG cylinders as a backup, slowing down complete transition.

IGL’s Current Stand: Wait and Watch

IGL is currently maintaining a “wait and watch” approach. The company expects that if crude oil prices soften in global markets, gas prices may stabilize, reducing the need for any hike.

Final Takeaway

• PNG prices are unlikely to see a major increase in the near term
• Any hike, if implemented, will have minimal impact on monthly expenses
• CNG prices remain more volatile due to global dependencies
• Government policies and tax changes could play a key role going forward

For now, consumers can expect relative stability in domestic gas prices, with only minor adjustments possible.