The hope of relief: Will CNG prices come down after petrol and diesel? The government may consider Siam's demand

Posted on 23rd May 2022 by rohit kumar

The Central Government reduced the prices of petrol and diesel by making a big cut in the excise duty and gave great relief to the public. Now it is expected that the government may soon reduce the prices of CNG. Actually, the government of Siam, an organization of vehicle companies, has demanded this. Experts say that the government can consider this demand.

 

Siam made this request to the government

 

SIAM on Sunday urged the government to cut CNG prices and reduce import duties on certain raw materials of steel and plastic products. Tagging Prime Minister Narendra Modi and Finance Minister Nirmala Sitharaman on Twitter, the organization wrote that the auto industry welcomes the decision to reduce excise duty on petrol and diesel. This decision will ease the inflationary pressures and bring relief to the common people of the country. The report released in this regard has expressed hope that the government can consider this demand and in the coming days, the price of CNG may also be cut.

 

Price hiked 13 times within two months

 

It is worth noting that while on the one hand the prices of petrol and diesel remained stable in the country and now their prices have been reduced. On the other hand, the process of increasing the prices of CNG is not taking its name to stop. CNG prices have been increased 13 times in the last two months. After this, the price of CNG in Delhi has increased to Rs 75.61. Let us inform here that the price of CNG has increased by Rs 19.60 per kg since March 7.

 

CNG costlier by Rs 32 in a year

 

First, the public was hit by the continuous increase in the prices of petrol and diesel, then CNG prices have given a big blow to both of them amidst stagnation for more than a month. If we look at the figures, in the last one year, the prices of CNG have increased tremendously. Its price has increased by 60 percent or Rs 32.21 per kg in a year. IGL's Managing Director Sanjay Kumar said that due to international prices of natural gas, prices are likely to remain elevated in the near future. Almost every week from January 2022, CNG has increased by about 50 paise per kg.

 

Demand is high and supply is low

 

Let us tell you that since April 1, the price of locally produced natural gas more than doubled to $ 6.1 per MBTU by the government. The reason behind the rise in the price of CNG is the demand and supply crisis. At this time the supply of gas all over the world is disturbed. The demand for gas is high and the supply is low. This more than doubled the cost of producing natural gas from oil regulated fields. SIAM has urged the government to rein in this growth.

 

Also Read: Petrol Price: India at number 42 in the world in terms of expensive petrol, know which countries are selling the most expensive

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