CNG prices in Delhi, Mumbai and Gujarat are rising sharply

CNG prices in Delhi, Mumbai and Gujarat saw sharp increases on Wednesday after the government raised prices of natural gas inputs to record levels.

Mahanagar Gas Limited (MGL) raised the price of compressed natural gas (CNG) by Rs 7 per kg to Rs 67 per kg in Mumbai while Gujarat Gas raised rates by Rs 6.5 per kg to Rs 76.98.

In the national capital, Indraprastha Gas Ltd (IGL) raised the price of compressed natural gas by another Rs 2.5 per kg, bringing the total increase in rates in the last month to around Rs 10 per kg.

CNG in the National Capital Territory (NCT) in Delhi now costs Rs 66.61 per kilogram, according to information posted on the website of Indraprastha Gas Ltd (IGL) – a company that sells CNG and pipeline cooking gas in the national capital and nearby cities.

According to MGL, the price of piped cooking gas to home kitchens has also been increased to Rs 41 per cubic meter in Mumbai.

There was no change in piped cooking gas rates by Gujarat Gas or IGL. In Delhi, it costs 41.61 rupees per cubic meter.

Prices vary from city to city depending on the occurrence of local taxes such as VAT.

These increases come on the back of the government doubling natural gas prices to $6.1 per million British thermal units, effective April 1.

Natural gas when compressed turns into CNG for use as a fuel in automobiles. The same gas is also transferred to home kitchens and industries for cooking and other purposes.

The increase in CNG prices follows the Rs 10 per liter hike in petrol and diesel prices in 16 days and the Rs 50 per cylinder hike in LPG cooking gas prices.

A record 137-day pause in reviewing gasoline and diesel prices ended on March 22. On the same day, the price of a 14.2 kg LPG cylinder was raised to Rs 949.50 in the national capital. In some places, the price of LPG has reached Rs 1,000.

Last week, MGL announced a cut in the retail price of compressed natural gas by Rs 6 per kilogram and piped gas by Rs 3.50 per cubic meter, effective April 1 after the Maharashtra government cut the value-added tax on fuel from 13.5 per cent to 3 per cent. cent.

Accordingly, the retail price of CNG was reduced by Rs 6 to Rs 60 per kilogram, and Piped Natural Gas (PNG) by Rs 3.50 to Rs 36 per standard cubic meter (scm) in and around Mumbai. However, rates have now been raised.

(The title and image for this report may have been reformulated only by the Business Standard staff; the rest of the content is automatically generated from a shared feed.)

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