Indraprastha Gas Ltd, the sole supplier of natural gas as automotive and kitchen fuel in Delhi and its suburbs, on Tuesday raised retail prices due to the impact of GST but the move is likely to prompt auto drivers and bus operators to demand fare hike.
In Delhi, CNG will become costlier by Rs 1.11 per kg and by Rs 1.27 per kg in Noida, Greater Noida, and Ghaziabad. The new consumer price will be Rs 38.76 per kg in Delhi and Rs 44.42 per kg in Noida, Greater Noida, and Ghaziabad.
The company will continue to offer a discount of Rs 1.50 per kg on CNG during odd hours between 12.30 am and 5.30 am at select outlets.
The price of gas piped to households (PNG) in Delhi will rise by 33 paise per unit (standard cubic meter, or SCM), from Rs 24.86 to Rs 25.19. Due to the differential tax structure in UP, PNG price will rise by 36 paise per unit.
In a statement on Tuesday, the company said the price was increased to make up for the loss of input credits against excise duty and service tax paid on certain goods and services purchased in the GST regime.
The company used to get these input credits in the pre-GST dispensation. 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 transportation charges for natural gas being purchased by IGL, which was not the case earlier.
Source: Times of India