Another hit of inflation on common people! CNG can be increased  by 4 to 6 rupees, government has this option

CNG Price Hike: Meanwhile here is a bad news for people struggling with inflation. Who is already facing inflation of food and drink, may now get another setback of inflation. CNG prices may increase by Rs 4 to 6. Though the increase in CNG prices will affect the common man's pocket.

CNG prices may increase Rs 4 to 6 per kg

While the government has cut the supply of cheap domestic natural gas to up to 20% to urban retailers. In such a situation, if custom duty is not cut on the fuel, then the CNG price supplied to vehicles can increase by Rs 4 to 6 per kg.

Inflation may increase more

Increase in CNG prices may increase inflation of food and drink. Transport of fruits, vegetables and other food items will become expensive due to CNG being expensive. In such a situation, the rate of food and drink will be increased to get its expenses.

Will affect the common man's pocket

Due to this, supply has been cut to urban gas distribution companies. Gas supplied to the kitchen in homes is preserved. In such a situation, the government has cut the supply of raw materials for CNG.

The gas received from old areas used to meet 90% of CNG demand in May, 2023 and it is steadily declining. He said that from October 16, the supply has been reduced to just 50.75% of the demand for CNG, which was 67.74% last month.

Urban Gas Ritlers are being forced to buy imported and expensive liquid natural gas (LNG) to compensate for this deficiency, which will increase CNG prices by Rs 4-6 per kg.

Government has this option

However at present, retailers have not increased CNG rates as they are interacting with the Ministry of Petroleum and Natural Gas to solve it. One option is that the government cuts custom duty on CNG.

Currently, the central government charges 14% custom duty on CNG, which sits Rs 14-15 per kg. He said that if it is cut, then retailers will not have to put the burden of increased cost on consumers.

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All though Natural gas, under the ground and under the sea level from places ranging from the Arabian Sea to the Bay of Bengal within India, is a raw material that CNG for vehicles and pipeused in the kitchen Natural is converted into PNG.