CNG price hike. CNG prices are skyrocketing. It is increasing continuously. According to the data, there has been a 60% increase in CNG prices in the last 1 year. The price of CNG has increased 13 times in the last 2 months. Let’s find out the reason for this.
CNG prices again increased by Rs 2 per kg in the national capital on Saturday, which is the 13th hike in CNG prices in two months. According to the information posted on the website of Indraprastha Gas Limited (IGL), the price of CNG in the national capital has now increased from Rs 73.61 per kg to Rs 75.61 per kg.
This is the 13th hike in CNG prices in the national capital and adjoining cities since March 7. During this period, the price of CNG has increased by Rs 19.60 per kg.
Price increased by more than Rs 32 in 1 yearÂ
Prices have risen by Rs 32.21 per kg, or 60 per cent, in the last one year, according to PTI data. However, the rate of piped gas in domestic kitchens, called piped natural gas (PNG), is priced at Rs 45.86 per scm.
What is the main reason?
City gas distributors have been raising prices from time to time since October last year. The main reason for this is the corona epidemic, due to which the world economy has deteriorated. Due to this, domestic and international gas prices have started rising.
Increase in international natural gas prices
Sanjay Kumar, Managing Director, IGL said that due to international natural gas prices, prices are likely to rise in the near future. CNG prices increased by Rs 8.74 per kg in the last three months of 2021 and by about 50 paise per kg almost every week since January.
CNG demand increased
Rates have gone up after the government more than doubled the price of locally produced natural gas to $6.1 per million British thermal units from 1 April. Domestically produced gas is not enough to meet the city’s gas demand, for which imported fuel (LNG) is being used. LNG price in the spot or current market is US$18-20 per mmBtu.
Prices also increase according to VAT
At the same time, when compressed, natural gas becomes CNG for use as a fuel in automobiles. The same gas is piped into domestic kitchens and industries for cooking and other purposes. Mahanagar Gas Limited (MGL) has fixed the price of Compressed Natural Gas (CNG) in Mumbai at Rs 76 per kg. Their prices can be high in many cities due to local taxes such as VAT.
