Business News Desk: The news of increase in the price of CNG may spoil the Diwali fun of the general public. The government has reduced the domestic administered price system (APM) gas allocation by 17-20%. Whose direct impact will be visible on the cost of CNG firm. After this, the price of CNG gas can be increased by Rs 5 or more per kilogram. This move will affect the CNG segment, leading to gas cuts every day. According to media reports, this will have a direct impact on companies like Mahanagar Gas Limited, Indraprastha Gas Limited.
Why will the price of CNG increase?
APM gas is extracted from only a few areas in India. The price of this gas is cheaper than its international rates. This subsidy in rates helps gas companies maintain their operating costs. This allows them to offer CNG gas to consumers at the right price. But recently a decline of about 17-20 percent was recorded in APM Gas and Fund. Which has affected the firms. Due to this, the government has cut the supply of cheap gas to the companies. On this, experts say that if the companies do not want to suffer losses, then for this they will have to increase the price of CNG by five to five and a half rupees per kg. It is being said that companies can turn to international markets to compensate for the lost volumes.
When did CNG price increase?
The price of CNG in Delhi-NCR was Rs 79.70 per kg in June 2024. After which it was increased. Apart from this, CNG prices also increased in Noida, Greater Noida, and Ghaziabad. Let us tell you that in March 2024, the price of CNG was also reduced by Rs 2.50.
