CNG gets cheaper by Rs 6 per kg

The development is the outcome of state government’s decision to reduce VAT on CNG from 13.5% to 3%

It is not an April Fool prank but there is a serious reason to cheer about. Amidst continuous hike in prices of petrol and diesel; the prices of compressed natural gas (CNG) have been reduced by Rs 6 per kg. Thus motorists will now be able to fill up their tanks with gas for Rs 60 per kg from April 1; which was earlier Rs 66 per kg.

The development is the outcome of Maharashtra government’s decision to reduce value added tax (VAT) on CNG from 13.5 per cent to three per cent making it cheaper across the state. The finance department has issued a notification to this effect, which will benefit autorickshaws, taxi drivers, passenger vehicles as well as common citizens.

On March 31, Mahanagar Gas Limited (MGL) stated that consequent to the reduction in the VAT on natural gas from 13.5 per cent to 3 per cent from April 1, they are pleased to pass on the entire benefit to the end consumers. Accordingly, the price of CNG is reduced by Rs 6 per kg and domestic piped natural gas (PNG) is reduced by Rs 3.50/SCM in and around Mumbai effective from midnight of March 31 and early morning of April 1.

“The revised delivered prices inclusive of all taxes of CNG will be Rs 60 per kg and domestic PNG will be Rs 36/SCM in and around Mumbai. MGL’s domestic PNG would save around 32 per cent as compared to current price of domestic LPG while delivering unmatched convenience, safety, reliability and environmental friendliness to consumers,” read a statement by MGL.

This decision is also important with regard to pollution control and motivating maximum number of people to buy CNG vehicles. For instance, the four regional transport offices (RTOs) in Mumbai namely Tardeo, Andheri, Wadala and Borivali have registered 3,863 vehicles run on petrol and CNG since January this year.

Of these, Tardeo RTO registered 1,173 vehicles, Wadala 1,080 vehicles, Andheri 611 vehicles and Borivali 999 vehicles. In March, the four RTOs registered 1,444 vehicles run on petrol and CNG, while in February these RTOs registered 1,216 vehicles on petrol and CNG, an increase of almost 19 per cent.

Moreover, the decision will also benefit the auto rickshaws and taxis of Mumbai that run on CNG. The unions have been demanding for a fare hike since February 2021; the prices of CNG rose drastically from Rs 49.40 per kg. Meanwhile, as on March 31, the prices of diesel touched Rs 100.94 per litre and that of petrol Rs 116.72 per litre.