CNG Prices Receive A Sharp Cut - New Rates For Top Metro Cities

The price cut comes in after the government’s new guidelines to stabilize the soaring CNG rates across the country

• CNG prices slashed by up to Rs 8 per kg in several cities.

• Mumbai CNG prices fell to Rs 79 per kg; Delhi at Rs 73.59.

• The price cut also increases the otherwise narrow gap between CNG and petrol prices.

• There are currently over 15 CNG cars from Maruti, two from Hyundai, and three from Tata.

In a relief to the increasing number of CNG car owners, the government has approved the new guidelines for gas prices. The new rules have been introduced to ensure a stable price card for domestic gas consumers, while producers/distributors are safeguarded from the market rate fluctuations. All the CNG distributors have slashed the prices, but they are different for each city.

In Delhi, where IGL (Indraprashta Gas Limited) is the major player, the CNG prices have been slashed by around Rs 6/kg. MGL (Mahanagar Gas Limited) has reduced the prices of natural gas by Rs 8 per kg in Mumbai. Torrent Gas, a major distributor in Pune and Chennai, hasve also made a noticeable cut. Among metro and Tier I cities, Pune has the highest prices, while overall, the natural gas is the costliest in Nagpur (Rs 115 per kg).

The government is also targeting an increased share of natural gas in the primary energy mix, from 6.5 percent to 15 percent by 2030. In over two years, the CNG prices per kilogram have almost doubled. As a result, the rates started coming close to petrol prices, with the difference dropping down to just around Rs 15. In several cities, the gap between the diesel and CNG prices was down to just a few rupees. In the case of Gurugram, for some months, the diesel price was slightly less than CNG.

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Currently, there are over 20 CNG cars that you can buy. Almost all the Maruti cars are now equipped with CNG, while we have the Grand i10 Nios and Aura from Hyundai. Tata offers the natural gas option with Tiago and Tigor; and soon, the Altroz and Punch will also be getting it. While mass-market brands and segments turn away from diesel engines altogether, CNG becomes the only economical alternative to the petrol models while hybrids attract a hefty premium for their frugality.