Maharashtra: CNG Price Surges Again By Rs 2.20 Per Kg In Pune. Know Why

In April, CNG price witnessed a hike from Rs 62.20 to Rs 68, then to Rs 73. On April 19, the price rose by Rs 2, bringing the cost to Rs75, before the latest hike.

Compressed natural gas (CNG) prices in Pune hiked | File Image

New Delhi: Compressed natural gas (CNG) prices in Pune have once again witnessed a hike, fourth consecutive time, by Rs 2.20 on Thursday.

"CNG will cost Rs 77.20 per kg from today,” said Ali Daruwala, spokesperson for All India Petrol Dealers Association, according to news agency ANI.

In April, CNG price witnessed a hike from Rs 62.20 to Rs 68, then to Rs 73. On April 19, the price rose by Rs 2, bringing the cost to Rs75, before the latest hike. And now, from April 29 onwards, commuters will have to shell out Rs 77.20 per kg in Pune for CNG. 

Earlier in March, the Maharashtra government had issued a notification to cut value-added tax (VAT) on CNG from 13.5 per cent to 3 per cent.

Following this, the prices had gone down to Rs 62 per kg. But the prices remained stable only for a few days.

The major reason attributed to the price rise is insufficient production of domestic gas in India compared to demand from customers, noted Daruwala.

The demand for India itself has tripled in the last year, added the national spokesperson. Apart from this, the rise in the input cost of natural gas in the international market also impacted the prices.

“India was purchasing gas from Qatar, Muscat, and other Arabic countries for the last several years for 20 dollars per cylinder. On other hand, the Russia-Ukraine war has impacted the prices,” he added.