CNG prices in Delhi, Mumbai and Gujarat 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 has been increased to Rs 41 per cubic metre in Mumbai. There was no change in rates of piped cooking gas by Gujarat Gas or IĞL. In Delhi, it costs Rs 41.61 per cubic metre. 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 units 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.