CNG prices in Delhi, Mumbai, Gujarat see steep hike

CNG prices in Delhi, Mumbai and Gujarat on Wednesday saw steep hikes after the government raised input natural gas prices to record levels.

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

In the national capital, Indraprastha Gas Ltd (IGL) raised CNG price by another Rs 2.5 per kg, taking the total increase in rates in the last one month to about Rs 10 per kg.

CNG in the National Capital Territory (NCT) of Delhi now costs Rs 66.61 per kg, according to the information posted on the website of Indraprastha Gas Ltd (IGL) – the firm which retails CNG and piped cooking gas in the national capital and adjoining cities.

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

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

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

The increases come on the back of the government more than doubling natural gas prices to USD 6.1 per million British thermal unit from April 1.

Natural gas when compressed becomes CNG for use as fuel in automobiles. The same gas is also piped to household kitchens and industries for cooking and other purposes.

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

A record 137-day hiatus in petrol and diesel price revision ended on March 22. On the same day, the price of a 14.2-kg LPG cylinder was increased to Rs 949.50 in the national capital. In some places, the LPG price has touched Rs 1,000.

Last week, MGL had announced a reduction in the retail price of CNG by Rs 6 per kg and piped gas by Rs 3.50 per scm, effective April 1 after the Maharashtra government cut VAT on the fuel from 13.5 per cent to 3 per cent.

Accordingly, the retail price of CNG was cut by Rs 6 to Rs 60 per kg and domestic piped natural gas (PNG) by Rs 3.50 to Rs 36 per standard cubic meter (scm) in and around Mumbai. However, the rates have now been increased.