- By Aditya Pratap Singh
- Mon, 25 Nov 2024 01:09 PM (IST)
- Source:JND
CNG Price Hike News: The cost of CNG has been raised by Rs 2 per kg in Mumbai and a number of other cities in the nation, but consumers in the election-bound state of Delhi have been exempted from this increase for the time being. This information was given by city gas companies. Indraprastha Gas Limited, which retails CNG to automobiles in the national capital and its surrounding areas and provides piped natural gas to homes for cooking, increased the price of CNG by Rs 2 per kg over the weekend.
Prices have been raised in Noida, Greater Noida, Ghaziabad, Gurugram, and other cities, but Delhi, where elections are set to take place in a few weeks, has been excluded from this increase. According to the MGL's website, Mahanagar Gas Limited (MGL), a city gas retailer in Mumbai, has raised the price of CNG by Rs 2 per kg in Mumbai and its surrounding areas after the elections were completed. Input costs have risen by 20% in the last two months, however, MGL and Adani Total Gas Limited, other city gas retailers, have not changed retail prices.
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As soon as the assembly elections in Maharashtra concluded, MGL increased the cost of CNG in Mumbai by Rs 2 per kg to Rs 77 from November 22nd. Other city gas retailers have also increased the price of CNG. According to the IGL's website, the cost of CNG in Delhi remained unchanged at Rs 75.09 per kg, while the price in Noida, Greater Noida, and Ghaziabad has risen by Rs 2 per kg to Rs 81.70 and in Gurugram to Rs 82.12 per kg.
When Uttar Pradesh was set to go to polls in 2022, IGL revised the rates in Delhi but did not change the rates for the cities in the state. Industry sources said the price of CNG in Delhi could be revised after the assembly elections scheduled for January/February. MGL and IGL did not provide a reason for the price hike, but sources stated that the increase was justified because companies are now required to purchase more costly gas following two rounds of cuts in the supply of controlled or APM gas.
CNG is made from natural gas extracted from land and seabeds and is utilized to power automobiles. However, supply from ONGC's domestic fields, referred to as APM gas, has been unable to keep up with the growing demand for CNG. The supply has been cut twice since mid-September, forcing city gas retailers to purchase costlier non-APM gas or expensive imported liquefied natural gas (LNG). The price of CNG varies from state to state depending on the impact of local taxes, such as VAT.
