CNG prices may rise by 4-6 rupees; Know what steps government can take to handle the situation
CNG Price: The government may try to control the rising prices of CNG by cutting excise duty. The government has reduced the supply of natural gas by 20 percent.
The government has cut off providing affordable CNG to retailers in cities. In this situation, it is expected that in the upcoming days, the price of CNG may rise by four to six rupees. However, according to Amar Ujala sources claim that by lowering excise duty, the government may attempt to contain the rising cost of CNG. Natural gas supplies have been cut by 20% by the government.
This includes natural gas supplies from underground and from the seabed through pipes from the Arabian Sea right up to the Bay of Bengal. This is a kind of raw material that gets converted to CNG for use in automobiles and for use as cooking gas in homes. The gas produced from the legacy field goes to the retail gas suppliers in cities. This supply is being curtailed by five percent annually. The supply of domestic cooking gas is stable, so there is no possibility of an increase in the same, but since the suppliers are getting less supply of the gas due to which they have to buy the expensive CNG. This is the reason why CNG prices are expected to increase in the coming days.
Media reports say elections are due soon in Maharashtra, while assembly elections will also take place in Delhi soon. Amidst such a backdrop, containing the ever-escalating prices by reducing the excise duty on CNG is something the government can do. After all, there is a sizeable number of CNG-based vehicles moving around in cities like Mumbai and Delhi. This is the reason why the government would not want the voters to be angry with the increase in prices. There is also a discussion that the situation can be handled by reducing the excise duty by the government in such a situation.
