The government has cut down on cheap CNG to urban retail suppliers. In such a situation, it is believed that the price of CNG may increase by four to six rupees in the coming days. This information has come to light quoting sources. Sources say that however, the government can try to control the rising prices of CNG by cutting excise duty. The government has reduced the supply of natural gas by 20 percent.
Gas supply is being cut
Natural gas is supplied to India from the Arabian Sea to the Bay of Bengal through pipes from underground and from the seabed. This natural gas is a kind of raw material, which is converted to CNG for use in automobiles and as cooking gas in homes. The gas produced from the legacy field is sent to retail gas suppliers in cities. This supply is being cut by five percent annually. The supply of domestic cooking gas is stable, so there is no possibility of increase in it, but since the suppliers are getting less supply of gas, they have to buy expensive CNG. This is the reason why the prices of CNG are expected to increase in the coming days.
