CNG prices to go up from June 8
The retail prices of Compressed Natural Gas (CNG) and Piped Natural Gas (PNG) are all set to go up from June 8.
The average retail price of CNG will go up by Rs 5.60 per kg while the price of PNG will be hiked by Re 1 per unit, sources in the Petroleum Ministry told Deccan Herald.
The hike in retail prices of CNG and PNG follows the Union Cabinet decision to enhance the price of natural gas fixed under the administered pricing mechanism (APM).
In a bid to compensate state-owned oil and gas explorers such as the Oil and Natural Gas Corporation Limited and the Indian Oil Corporation Limited, the cabinet last month virtually doubled the APM price of natural gas and brought it almost on a par with the price being charged by private explorers.
Subsequently, the state-owned gas supplier Gas Authority of India Limited (GAIL), which meets 90 per cent of its gas requirements from the gas procured at APM price, has been contemplating passing on a major chunk of the burden to consumers.
The process for hiking retail prices of CNG and PNG was kicked off as soon as the Centre on June 1 notified the cabinet decision to more than double the APM price of natural gas.
While Indraprastha Gas Limited(IGL), which is a subsidiary of the GAIL, supplies CNG and PNG in the National Capital Region, the Mahanagar Gas Limited(MGL) istributes these two fuels in Mumbai.
With the virtual doubling of the APM price of the natural gas, both IGL and MGL were contemplating hiking the prices, but the Petroleum Ministry is understood to have prevailed upon the two gas retailers to keep the inflation-hit consumers in mind, sources said.
Retail prices of CNG and PNG may witness frequent changes as the new APM price of natural gas has been linked to the dollar. The methodology for deciding the periodicity and formula of revision of prices due to the fluctuation in exchange rates of rupee vis-à-vis US dollar are yet to be worked out, it said.
