CNG price hiked by Rs 2 in Mumbai, other cities; poll-bound Delhi spared

New Delhi: City gas retailers have raised compressed natural gas (CNG) prices by Rs 2 per kg across several cities, citing increased costs due to reduced regulated gas supplies. However, poll-bound Delhi has been spared the hike, with prices remaining steady at Rs 75.09 per kg, according to official sources.

Indraprastha Gas Ltd (IGL), which supplies CNG in the national capital and neighbouring regions, implemented the Rs 2 per kg hike over the weekend in Noida, Greater Noida, Ghaziabad, Gurugram, and other areas. Rates now stand at Rs 81.70 per kg in Noida and Rs 82.12 per kg in Gurugram. Delhi prices, however, remain unchanged as the city prepares for its upcoming assembly elections. Industry insiders suggest a revision may follow the polls early next year.

In Mumbai, Mahanagar Gas Ltd (MGL) increased CNG prices to Rs 77 per kg, effective November 22, after a two-month pause during the Maharashtra assembly elections. Similar hikes have been implemented by other gas retailers like Adani Total Gas Ltd. The price adjustments stem from reduced supplies of regulated gas, known as APM gas, which is crucial for CNG production. Domestic supplies from ONGC fields have been cut twice since mid-September, forcing companies to rely on more expensive non-APM gas and imported liquefied natural gas (LNG).

State-level variations in CNG prices also reflect differing local taxes, such as VAT. Analysts expect further price adjustments as supply constraints persist and input costs rise.