There are strong speculations that CNG prices in India might be increased by Rs.2/kg within a few days. The depreciating Indian Rupee is the main factor behind this. Most local gas retailers in the country that are involved in CNG supply to automobiles get their raw materials either from the state operated GAIL or the Reliance Industries. The raw material prices have increased following the rupee depreciation. Supplies from the gas fields of Reliance have also drastically reduced which is forcing the gas retailers to go for the more expensive imported LNG.
Most gas retailers in New Delhi, including IGL, are expected to announce increase in fuel prices by this weekend. IGL along with Mumbai based Mahanagar Gas Limited are currently procuring the imported LNG, which is going to force them to go for a price revision within the next few days.
Increase in CNG prices will affect not only the owners of CNG cars but will also have an impact on cab and Auto Rickshaw drivers. This is going to result in increase in fares of public transport. Petrol prices are also expected to be revised shortly by Rs.2/liter expected from December 31st.
