'Reconsider…': Maharashtra deputy CM's plea to centre over gas price hike

The Maharashtra government had slashed Value Added Tax (VAT) on natural gas as on April 1, leading to CNG price falling by ₹6 and PNG by ₹3.50/standard cubic metre.

Maharashtra deputy chief minister Ajit Pawar on Thursday urged the centre to re-consider increasing prices for CNG (compressed natural gas) and PNG (piped natural gas), which were hiked across the country from Tuesday midnight. In Mumbai CNG price increased by ₹7 per kg to settle at ₹67 per kg and that of PNG by ₹5 per kg to ₹41 per standard cubic metre.

Maharashtra deputy chief minister Ajit Pawar (HT PHOTO)

"I do not want to impose more taxes. Rather, we (Maharashtra government) reduced tax on gas. With the state, the centre should also reduce the tax. The central government imposes more tax than the state and it should reconsider this," Pawar told reporters.

The Maharashtra government had slashed Value Added Tax (VAT) on natural gas as on April 1, leading to CNG price falling by ₹6 and PNG by ₹3.50/standard cubic metre.

However, state-run Mahanagar Gas Limited increased prices this week, saying that the increase in selling price of natural gas and LNG, or liquefied natural gas, had led to the hike.

"The selling price of domestically-produced natural gas has been increased by 110 per cent by the Government of India with effect from April 1, 2022. Further, cost of regasified LNG, which is being blended to offset the shortfall in availability of domestic gas for CNG and D-PNG segments, are at historically high levels. This combination has resulted in a significant increase in the cost of gas being procured by MGL," the MGL statement said.

Earlier, Maharashtra's Maha Vikas Aghadi government had waived tax of ₹1,000 crore on LPG and CNG in the state budget to give relief to people.

Ajit Pawar, who also holds the finance and planning department, on March 11, said the state would make drastic cuts in the VAT on natural gas - from 13.5 per cent to 3 per cent. The move was to make CNG cheaper in the state. The substantial cut was also expected to bring relief to the consumers of domestic piped CNG as well as vehicle owners.

India also witnessed its 14th hike in fuel prices in 15 days on Wednesday. Petrol and diesel prices have gone up by ₹10 per litre each in the past 16 days.

The government is facing opposition parties' fury over the hike in fuel and gas prices.