Public happy as CNG to cost Rs 2 less in Gurgaon | delhi | Hindustan Times
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Public happy as CNG to cost Rs 2 less in Gurgaon

Owners of CNG-run vehicles in Gurgaon got a reason to smile, as the city’s only gas distribution company reduced the fuel’s rates by Rs 2 per kilogram. The fuel will now cost Rs 28.8 in Gurgaon.

delhi Updated: Nov 13, 2010 00:51 IST
Sanjeev K Ahuja

Owners of CNG-run vehicles in Gurgaon got a reason to smile, as the city’s only gas distribution company reduced the fuel’s rates by R2 per kilogram. The fuel will now cost Rs 28.8 in Gurgaon.

However, despite this reduction, the price of CNG will remain higher than that in Delhi, where the fuel is sold for R27.5 per kilogram.

The decision came into effect from Friday, after the Haryana government issued a notification to reduce the value added tax (VAT) on compressed natural gas from 12.5% to 5%, chargeable on its sale in the state.

Although the decision to reduce VAT on CNG in Haryana was taken in August, the authorised CNG distribution company, Haryana City Gas Services (HCGS), was waiting for the state government’s official notification in this regard.

“After receiving the copy of the notification, we have reduced the CNG price and have passed the benefit of VAT reduction to our customers,” the company officials said.

According to the officials at HCGS, the Haryana government issued notification on Thursday.

MS Khatkar, senior vice-president of HCGS, said the sale of CNG would now increase, as the price difference in the two regions became marginal.

Khatkar said that his company had been urging the Haryana government to reduce the VAT on CNG in Gurgaon for the past three years and the goodwill gesture shown by the company would definitely benefit the consumers.

Gurgaon has four functional CNG stations. HCGS sells about 65,000 kg of CNG daily in Gurgaon and caters to about 6,000 CNG-run vehicles every day.

But, because the fuel was cheaper in Delhi, several vehicles would fill their tanks in Delhi.