CNG price hiked by ₹2 in Mumbai, other major cities; poll-bound Delhi spared

Compressed Natural Gas (CNG) prices have been increased by ₹2 per kilogram in Mumbai and several other cities across India, but consumers in poll-bound Delhi have been spared for the time being, city gas distribution companies said on Monday.

Indraprastha Gas Limited (IGL), which supplies CNG and piped natural gas in the national capital region, raised prices by ₹2 per kg over the weekend in cities such as Noida, Greater Noida, Ghaziabad, and Gurugram. However, the price in Delhi, which faces assembly elections in a few weeks, remains unchanged at ₹75.09 per kg.

In Mumbai, Mahanagar Gas Limited (MGL) announced a ₹2 per kg hike in CNG prices to ₹77 per kg with effect from November 22, following the conclusion of the Maharashtra assembly elections. Prices in adjoining areas were similarly revised, according to the company's website.

CNG rates vary across states due to differences in local taxes such as Value Added Tax (VAT). As of November 23, prices in Noida, Greater Noida, and Ghaziabad stood at ₹81.70 per kg, while Gurugram witnessed a hike to ₹82.12 per kg, according to IGL’s website.

The price hike comes days after the CNG retailers confirmed a further reduction in domestic gas allocation, which is expected to adversely impact their profitability.

Natural gas from India's ageing legacy fields, which supply city gas distributors like IGL, is declining by about 5% annually. This has progressively reduced domestic gas availability for CNG, which accounted for 90% of supply in May 2023.

Bridging the gap with higher-priced alternatives could lead to CNG prices rising by ₹4-6 per kg, PTI earlier reported quoting sources in city gas retailers.