Utility News Desk!!! The news of increase in the price of CNG may spoil the Diwali fun of the general public. The government has cut domestic administered price system (APM) gas allocation by 17-20%. Which will have a direct impact on the cost of the CNG company. After this, the price of CNG gas may increase by Rs 5 per kg or more. This move will impact the CNG segment, leading to reduction in gas every day. According to media reports, this will have a direct impact on companies like Mahanagar Gas Limited, Indraprastha Gas Limited.
Why will CNG prices increase?
APM gas is extracted from only a few areas of India. The price of this gas is cheaper than its international rates. This subsidy in rates helps gas companies maintain their operating costs. With this they will be able to provide CNG gas to consumers at the right price. But recently a decline of about 17-20 percent has been recorded in APM Gas and Fund. Which impacts companies. Due to this, the government has cut the supply of cheap gas to the companies. Experts say that if companies do not want to incur losses then 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 may turn to international markets to compensate for the lost volumes.
When did CNG prices increase?
In June 2024, the price of CNG in Delhi-NCR was Rs 79.70 per kg. After which it was increased. Apart from this, CNG prices were also increased in Noida, Greater Noida and Ghaziabad. Let us tell you that in March 2024, the price of CNG was reduced by Rs 2.50.