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The price of Compressed Natural Gas (CNG) in Mumbai and several other cities across India has been increased by Rs 2 per kg, although users in Delhi have been spared for the time being, city gas companies have confirmed.

 

Indraprastha Gas Ltd (IGL), which supplies CNG to automobiles and piped natural gas for household cooking in Delhi and its neighbouring cities, raised CNG prices by Rs 2 per kg over the weekend.

 

The price hikes were applied in Noida, Greater Noida, Ghaziabad, Gurugram, and other cities, but Delhi, which is set to go to the polls in the coming weeks, has not seen any change in prices.

 

In Mumbai, Mahanagar Gas Ltd (MGL), which retails CNG in the city and surrounding areas, also raised its prices by Rs 2 per kg, effective from November 22. The price increase in Mumbai follows the conclusion of Maharashtra’s assembly elections, with MGL now charging Rs 77 per kg for CNG.

 

 Other city gas retailers, including Adani Total Gas Ltd, have also raised prices.

 

CNG rates in Delhi remain unchanged at Rs 75.09 per kg, but prices in Noida, Greater Noida, Ghaziabad, and Gurugram have risen by Rs 2 per kg. The new rates are Rs 81.70 per kg in Noida, Greater Noida, and Ghaziabad, and Rs 82.12 per kg in Gurugram, effective from November 23.

 

The price hikes come despite a 20% increase in the input cost for city gas retailers, which had kept CNG prices steady for the past two months.

 

According to industry sources, the increase was driven by the need to purchase more expensive gas following successive cuts in supplies of regulated (APM) gas.

 

Natural gas, which is converted into CNG for automobile use, is primarily sourced from domestic fields operated by ONGC. However, domestic supply from APM fields has struggled to meet rising demand, resulting in a reliance on costlier non-APM gas and imported liquefied natural gas (LNG).

 

CNG prices vary across states depending on local taxes such as VAT. While Delhi has not yet seen an increase, experts suggest that price revisions may be considered after the assembly elections in Delhi, due in early 2025.

 

In 2022, when Uttar Pradesh held elections, IGL revised CNG prices in Delhi while maintaining unchanged rates in other cities within the state. It is widely expected that the same pattern may be followed in the capital after the upcoming elections.