CNG Price Hike If you also have a CNG vehicle, then this festive season you may be hit by inflation. Actually, it is believed that oil marketing companies are going to increase the prices of CNG soon. However, no official information has come on this yet. In this article, let us know how much the prices of CNG can increase.
The general public is already struggling with the brunt of inflation. In such a situation, now a new update is coming out regarding inflation. In fact, news agency PTI, citing sources, said that the government along with the country’s main oil marketing companies are planning to increase the prices of CNG (CNG Price Hike). However, no official announcement has been made on this yet.
How expensive will CNG be?
The government has cut the supply of natural gas by 20 percent for urban retailers. The effect of this cut can also be seen on oil prices. It is believed that due to this cut, the price of CNG may increase by Rs 4 to Rs 6 per kg. However, according to sources, the government has also cut the excise duty on fuel price.
Supply is decreasing
The price of CNG is decided by the government. The supply of CNG has been decreasing for some time, due to which urban gas retailers are also getting less supply. It is being said that the supply of natural gas is declining by 5 percent annually. Due to the fall in supply, the prices of CNG are coming down.
Why will the price of CNG increase
There has been no change in the input of LPG supplied through pipes to homes. There is no update on their prices yet. In such a situation, the question arises that why will the price of CNG increase? The answer is that the demand for CNG has reduced significantly as compared to May 2023. While the demand for CNG was 90 percent in May 2023, it fell to 50.75 percent on 16 October 2024 this month. At the same time, the demand for CNG was 67.74 percent in September last month.
In such a situation, due to the decrease in demand and supply, oil companies have to import natural gas. Due to this also CNG can become expensive by 4 to 6 rupees per kg. According to sources, till now oil companies have not demanded to increase the prices of CNG. Oil companies and the Ministry of Petroleum and Natural Gas are looking for solutions to the fall in demand and supply of natural gas.
IGL said in a filing that the company gets domestic gas allocation to meet the requirement of CNG sales volume at the price fixed by the government (currently US $ 6.5 per million British thermal unit). Based on the communication received by the company from GAIL India Limited (nodal agency for domestic gas allocation), it informed that there has been a major cut in domestic gas allocation from October 16, 2024.