CNG prices may increase by four to six rupees

New Delhi| The government has reduced cheap CNG to urban retail suppliers. In such a situation, it is believed that CNG prices may increase by four to six rupees in the coming days. This information has come to light quoting sources. Sources say that however, the government may try to control the rising prices of CNG by cutting excise duty. The Government has reduced the supply of natural gas by 20 per cent.

From the Arabian Sea to the Bay of Bengal, natural gas is supplied through pipes from underground and sea level in India. This natural gas is a kind of raw material, which is converted into CNG for use in automobiles and cooking gas in homes. Gas produced from legacy fields is sent to retail gas suppliers in cities. This supply is being reduced by five percent annually. The supply of domestic LPG is stable, hence there is no possibility of increase in it, but since the suppliers are having less supply of gas, due to which they have to buy expensive CNG. This is the reason why CNG prices are likely to increase in the coming days.

According to media reports, elections are to be held in Maharashtra soon and assembly elections will be held in Delhi also in a few months. In such a situation, the government can cut excise duty on CNG to stop rising prices. Cities like Mumbai and Delhi have a large number of CNG based vehicles. This is the reason why the government would not want voters to be angry with the increase in prices. In such a situation, there is also talk that the government may reduce excise duty to handle the situation.