(ET)
The price of gas that is supplied to CNG vehicles and households has jumped 18% to $10.5 per mmBtu in monthly revision from Monday. This is three-and-half times that of the rate city gas companies paid for domestic supplies at March-end and nearly six times that of last August.
GAIL supplies the gas, a blend of domestic and imported LNG, at a uniform rate to city gas companies, which are expected to pass on the increase to to consumers of CNG and piped kitchen fuel. Green Gas Ltd raised CNG rates Monday by ₹5.3 per kg in Lucknow to ₹96.10 per kg.
Lower taxes as well as traditionally cheaper domestic natural gas had helped keep CNG rates lower compared to heavily taxed petrol and diesel for years in the country. But rising gas prices are threatening to derail the math: in a year CNG prices have risen 74% in Delhi and 62% in Mumbai and are expected to rise further.
