CNG prices have risen by ₹2 per kilogram in Mumbai and several other cities across India. However, consumers in Delhi, the national capital, have been spared from this increase for now, likely due to upcoming elections.
According to Indraprastha Gas Limited (IGL), the company responsible for supplying CNG and piped natural gas in Delhi and nearby areas, the price hike has been implemented in regions like Noida, Greater Noida, Ghaziabad, Gurugram, and other cities. However, Delhi remains unaffected, where the elections are just months away.
CNG Prices Revised Across Key Cities
Mumbai’s gas supplier, Mahanagar Gas Limited (MGL), has increased the price of CNG by ₹2 per kilogram following the conclusion of state assembly elections. Starting November 23, the cost of CNG in Mumbai has been raised to ₹77 per kilogram. Other city gas retailers, including Adani Total Gas Limited, have also revised their prices after maintaining stable rates for the past two months, despite a 20% rise in raw material costs.
In the Delhi-NCR region, the prices now stand as follows:
- Delhi: ₹75.09 per kilogram (unchanged)
- Noida, Greater Noida, Ghaziabad: ₹81.70 per kilogram
- Gurugram: ₹82.12 per kilogram
Election Influence on Price Stability
CNG prices often vary due to factors such as local taxes (VAT) and regional demand. In Delhi, price adjustments are historically influenced by elections. For example, during the 2022 Uttar Pradesh elections, IGL adjusted Delhi’s prices but kept rates in UP cities stable.
Reason Behind the Price Hike
Industry insiders suggest that the increase is necessary due to a reduction in the supply of regulated or APM (Administered Pricing Mechanism) gas, forcing companies to purchase more expensive gas. Retailers like IGL and AGL have not officially disclosed reasons for the hike but have indicated that rising costs make the adjustment inevitable.
Prices in Delhi are expected to be revised after the assembly elections, anticipated in January or February. Until then, residents in the capital enjoy some relief from the nationwide trend of price increases.
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