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CNG price hiked again by ₹2.20 per kg in Pune
The compressed natural gas (CNG) prices in Pune have been hiked for the fourth consecutive time by ₹2
The compressed natural gas (CNG) prices in Pune have been hiked for the fourth consecutive time by ₹2.20. From April 29 onwards new rate for CNG in Pune city would be ₹77.20 per kg.
Earlier this month, the state government had announced to cut down the VAT on natural gas from 13 per cent to 3 per central, effective from April 1. Accordingly, the rates of CNG gas in Pune had gone down to ₹62 per kg. However, this lasted for a few days, and on April 6, the rates were increased by ₹7, then on April 13, it was again increased by ₹5 and recently, on April 18, it was increased by ₹2. The reason given behind these three consecutive price hikes was the same international market rates increased of one of the addictive gas rates which are used to make the CNG gas.
Ali Daruwala, the national spokesperson of All India Petrol Dealers Association, said, “The main reason for the price rise is that the domestically produced gas in India is not sufficient as compared to demand from customers. The demand for India itself has tripled in last one year.”
“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 said.
“Now these European countries have started buying gas from Arabian countries at 40 dollars per cylinder which is double the price and 40 dollars is again cheap gas for European Union. The demand at 40 dollars has put an extra burden on the Indian exchequer and if this continues then CNG will reach ₹80 per kg very soon, said Daruwala.
“Also, the LNG cargo ships which are coming to India via sea route too had been disrupted due to trouble in route via Arabian countries because of war situation. Until the Russian and Ukraine war ends, we cannot expect any respite in from price cuts,” he added.
