Fri Oct 18 05:57:43 UTC 2024: ## CNG Price Hike Looms After Election, Affecting Auto-Rickshaw Passengers

**New Delhi:** CNG-powered auto-rickshaws are set to become more expensive after the upcoming state elections in Maharashtra and Jharkhand, as the government has slashed the supply of cheaper domestic gas to urban gas distribution companies (UGDCs) responsible for selling CNG.

According to reports, the government has reduced the supply of cheaper domestic gas by a fifth, forcing companies to rely more heavily on costlier imported fuel. This, in turn, will likely lead to an increase in CNG prices.

“The government has reduced the supply of domestic gas, which was previously available at half the price of imported gas,” said a source close to the development. “Companies like Indraprastha Gas Limited (IGL) and Mahanagar Gas Limited (MGL) have reported significant reductions in their allocations, which will affect their profitability and necessitate an increase in CNG prices.”

While the price hike is expected to be implemented after the elections, the exact timing is yet to be confirmed.

The move is anticipated to impact the CNG vehicle registration growth, which has been a key driver of CNG sales in the sector. Industry experts suggest that a price increase of Rs 5-5.5 per kg may be necessary to maintain profit margins.

**The government’s decision comes amidst rising global gas prices and a push towards cleaner energy sources. While the move may be intended to align with the latter, it is likely to have a ripple effect on transportation costs and could impact affordability for consumers.**

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