CNG price in Mumbai and other cities in the country has surged by Rs 2 per kg, sparing users in poll-bound Delhi for the time being, according to city gas firms. CNG prices in Delhi may be revised after assembly elections due in January /February.
Indraprastha Gas Limited, the firm responsible for retailing CNG to automobiles and providing piped natural gas to household kitchens for cooking in Delhi-NCR, increased CNG price by Rs 2 per kg.
Noida, Greater Noida, Ghaziabad, Gurugram and other cities witnessed the surge in price except Delhi. The CNG prices may get revised after assembly elections due in January/February.
Advertisement
Mahanagar Gas Limited (MGL) - the city gas retailer in Mumbai, hiked CNG prices in Mumbai and adjoining areas by Rs 2 per kg after the results of Maharashtra assembly elections were announced, according to MGL website. A major number of public trasport vehicles like auto, taxis and buses across Mumabi rely on CNG for daily fuel. With the hike in CNG rates, the auto union in Mumbai will renew its demand for Rs 2 fare hike, as per The Economic Times report.
MGL and other city gas retailers, like Adani Total Gas Ltd, had maintained a steady price for the past two months despite a 20 per cent increase in input cost. However, MGL raised CNG prices Rs 2 per kg to Rs 77 in Mumbai with effect from November 22 right after the assembly elections in Maharastra concluded. Other city gas retailers too have hiked CNG prices.
Advertisement
While CNG rates in Delhi remain unchanged at Rs 75.09 per kg, prices have gone up by Rs 2 per kg to Rs 81.70 in Noida, Greater Noida and Ghaziabad, and to Rs 82.12 per kg in Gurugram with effect from November 23, according to IGL website.
During the 2022 Uttar Pradesh elections, IGL had revised prices in Delhi but kept rates unchanged for cities in the state.
Why Is the CNG Price Increasing?
MGL and IGL did not give reasons for the increase but sources said that the hike happened because the firms now have to buy expensive gas following a two successive rounds of cut in supplies of regulated or APM gas, as per the PTI report.
Natural gas, pumped out of the ground and seabed, is turned into CNG for running automobiles and cooking gas. There is no change in price for cooking gas. But due to higher CNG-fuel demand, supplies from domestic fields of ONGC, called APM gas are falling short of meeting the demands.
Supplies have been cut twice since mid-September, necessitating city gas retailers to buy costlier non-APM gas or expensive imported liquefied natural gas (LNG).
CNG rates differ from state to state depending upon the incidence of local taxes such as VAT which varies.
Just one email a week