Gurgaon: CNG price goes up to Rs43.75 per kg due to GST impact

The Haryana City Gas Distribution Limited, which supplies CNG to Gurgaon, has increased the price by Rs1.65 per kg due to GST

The price of Compressed Natural Gas (CNG) has increased in the city from Wednesday due to the Goods and Services Tax (GST). Buyers will now have to pay an extra Rs1.65 per kg as the Haryana City Gas Distribution Limited (HCGDL), which supplies CNG to the city, has hiked prices from Rs42.1 per kg to Rs43.75 per kg.

The price has been revised for the first time this financial year and the company said it will not have much impact on the per kilometre running cost of CNG vehicles. (Rahul Grover/HT File)

The price has been revised for the first time this financial year and the company said it will not have much impact on the per kilometre running cost of CNG vehicles.

Rahul Chopra, chief executive officer, HCGDL, said, “The price has increased due to the impact of the GST. Earlier, there was no GST on transportation charges for natural gases. The price usually increases twice a year when the US dollar changes (as gas purchase rate is in dollars). The new price is applicable with effect from July 26.”

According to company officials, despite the hike in CNG price, it is still cheaper than petrol and diesel and vehicles will not be affected much. Consumers, however, had a different view.

“If CNG price keeps increasing like this, who will buy a CNG vehicle? One needs to waste a lot of time and fuel while standing at the stations and reaching there is another task,” said Dharmender Kadian, a cab driver.

“The price is increasing, but there is no relief from the long queues at all CNG stations. It takes more than half an hour to get the tank filled. If the price has increased, at least provide some relief to people,” said Rommy Gildiyal, an MNC executive and resident of Sector 57.

The first CNG station was set up in the city at Sector 29 in July 2008. At the time, the fuel was sold for Rs27.50 per kg while the price in Delhi was Rs18.90 per kg.

The HCGDL had announced earlier that Gurgaon will get 50 CNG stations by 2015, but it runs only 17 CNG filling stations in the city with 175 pumps. These stations are located in sectors 12, 14, 15, 22, 29, 31, 44, 49, 52, 53, 56, 57, 62, 86, 89, Sector 15 part 2 and Pataudi city. These stations have a combined capacity of 2.5 lakh kg, while the city’s daily requirement is 3.5 lakh kg.