NEW DELHI, June 17 (UPI) -- The Indian government is sending conflicting signals on proposed energy price increases.
India's Oil Ministry agreed that public companies Indraprastha Gas Limited and Mahanagar Gas Limited energy suppliers in New Delhi and Mumbai could raise their compressed natural gas prices.
The price increase isn't consistent across the board however, as IGL didn't raise natural gas prices on the gas that it pipes to households for cooking. MGL has instituted a modest piped gas price increase.
In May the Indian government agreed to raise the price of natural gas supplied under government control, sold as auto fuel in the two cities, with CNG prices to rise beginning June 8. A ministerial panel meeting the previous day deferred a final decision, however.
Despite the price increase CNG even at its increased rate remains competitive with the current price of liquid motor fuels, as CNG even at the increased proposed prices will still be 58 percent cheaper than gasoline and 28 percent than diesel in the capital New Delhi.
