Indraprastha Gas Ltd today announced a marginal Rs 0.20 per kg increase in price of CNG it sells in Uttar Pradesh on account of hike in VAT rates.
"Due to increase in additional VAT by the government of Uttar Pradesh, IGL announces marginal correction of 20 paise per kg in the selling price of CNG being supplied by it in Noida, Greater Noida and Ghaziabad," the company said in a press statement.
The new consumer price of Rs 43.30 per kg in Noida, Greater Noida and Ghaziabad would be effective from 2200 hours tonight.
The increase in CNG price in Noida, Greater Noida and Ghaziabad of Uttar Pradesh, where IGL is supplying CNG, is being done due to increase in additional VAT from 1 per cent to 1.5 per cent for items covered in Schedule V, thereby making effective rate of VAT on CNG at 14 per cent from 13.5 per cent, it said. "This minor correction will have negligible impact on the running cost of the vehicles," IGL added.