Festive Shock! CNG Prices Set to Surge by ₹5 Just Before Diwali – Here’s Why Gas is Getting Costlier

CNG Price Hike:Drivers of CNG vehicles might face an unwelcome surprise this Diwali as CNG prices are expected to increase. Reports suggest a possible hike of ₹5 per kilogram due to a reduction in the domestic Administered Pricing Mechanism (APM) gas allocation by 17-20%. This cut in gas supply will raise costs for CNG firms, leading to higher prices for consumers. Companies like Mahanagar Gas Limited and Indraprastha Gas Limited are expected to be impacted directly.

Why is the CNG Price Rising?

APM gas, sourced from specific regions in India, is typically cheaper due to subsidies that help companies manage operational costs and supply CNG at affordable prices. However, the recent reduction in APM gas allocation is forcing companies to raise prices to maintain profitability. Experts predict an increase of ₹5 to ₹5.50 per kilogram of CNG to offset these rising costs.

Previous CNG Price Hikes

In June 2024, the price of CNG in Delhi-NCR stood at ₹79.70 per kilogram, following a price hike earlier this year. Before this, CNG prices were also increased in Noida, Greater Noida, and Ghaziabad. However, in March 2024, there was a slight reduction of ₹2.50 per kilogram.

This upcoming price hike could dampen the festive season for CNG users, as fuel costs rise across the board.

Also Read: Switch Your Ride: How to Convert Your Petrol Car to CNG and Save Big on Fuel Costs!