CNG Price Hike: CNG price is going to be on fire, consumers are going to have a heavy burden on their pockets.

CNG Price Hike : CNG prices are going to increase. The government has reduced the supply of cheap domestic natural gas to urban retailers by up to 20 percent. After this, the prices of CNG are going to increase. It is estimated that there may be an increase of Rs 4 to 6 per kg. However, the companies selling CNG have not yet increased the prices and are in talks with the government. Natural gas extracted from many areas of the Arabian Sea and Bay of Bengal in the country is converted into CNG and used as fuel in vehicles.

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Demand from the government to reduce taxes

CNG is used in domestic kitchens. In such a situation, its impact will be visible on the common man's pocket also. According to the report, there has been no change in the supply of piped natural gas (CNG) for domestic cooking gas, but the supply of CNG has been reduced. By May 2023, up to 90 percent of the demand of city gas retailers is being met by domestic gas. After this supply, city gas retailers had to import it from the international market at expensive prices.

We are trying to find a solution to this problem with the Ministry of Petroleum and Natural Gas under the Government of India. A demand has been made to the government to reduce the exercise duty on CNG. If the government reduces this tax, retailers will not have to pass on the increased prices to customers. In such a situation, this will be a matter of great relief for the common man.

Why did the supply have to be reduced?

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According to the information, the city gas retailers had to cut the gas supply because the government decided to again provide domestic gas supply to the OPAL (ONGC Petro Edition Limited) plant promoted by ONGC.

Government can cut excise duty

According to media reports, elections are to be held in Maharashtra soon and in a few months assembly elections will also be held in Delhi. 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 the voters to be angry with the increase in prices. In such a situation, it is also discussed that the government can reduce the excise duty to handle the situation.