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Delhi government to move SC for restoring CNG quota to reduce price

New Delhi: In a bid to reduce price of CNG, the Delhi government today decided to approach the Supreme Court to challenge Centre's cut in allocation of cheaper domestic natural gas to the national capital
PTI January 27, 2014 20:57 IST
PTI
New Delhi: In a bid to reduce price of CNG, the Delhi government today decided to approach the Supreme Court to challenge Centre's cut in allocation of cheaper domestic natural gas to the national capital following an order by the Gujarat High Court.

Following a Gujarat High Court order, the Centre had ordered all of domestically available natural gas for city gas projects to be equitably distributed among all the companies in the country than convert the fuel into compressed natural gas (CNG) for sale to automobiles.

Prior to this, cheaper domestic gas was largely available to firms retailing CNG in Delhi and Mumbai.  

“We want restoration of Delhi's quota of CNG allocation under the administered price mechanism which was reduced by the Centre to implement the Gujarat High Court,” a Delhi Government official said.

He said talks are on with the Indraprastha Gas Limited to find a way out to cut prices of CNG that fuels public transport on Delhi roads.

The CNG prices were hiked by a steep Rs 4.50 per kg on December 26, two days before Arvind Kejriwal assumed power.