CNG Price Surge: A Tale of Elections and Supply Cuts

CNG prices in Mumbai and other cities increased by Rs 2 per kg, sparing Delhi due to upcoming elections. City gas firms, facing supply cuts and increased input costs, raised prices after holding them steady in light of political events. Delhi prices are likely to change post-elections.

CNG prices have surged by Rs 2 per kg in several Indian cities, including Mumbai, following the conclusion of local elections. However, in Delhi, where polls are imminent, prices remain unchanged for now, according to city gas firms.

Indraprastha Gas Ltd (IGL), which supplies CNG to vehicles and distributes natural gas for household use in the national capital and surrounding areas, announced a price hike over the past weekend. This came despite maintaining prices for two months amid a 20% rise in input costs.

Industry insiders suggest that prices in Delhi could escalate after the upcoming assembly elections. The price increase is attributed to reduced APM gas supplies, pushing firms to purchase more expensive alternatives such as non-APM gas or imported LNG, compounded by varying state taxes.

(With inputs from agencies.)