CNG price reduced by Rs. 15 per kg in Delhi

The price of compressed natural gas was slashed by Rs. 15 per kg in Delhi, oil minister M Veerappa Moily announced on Monday. The price of piped natural gas  was also cut by Rs. 5, he added.

While the CNG price was cut by almost 30% in Delhi, the minister said this was a positive signal for other states and cities, which could also soon see price reduction of 25-30%. The central government told the Supreme Court it would give CNG at uniform prices to all states that had a distribution network.

“If the move helps us in polls, it would be incidental. Our aim is to help the common man,” Moily said while announcing the price cut.

The price of CNG was earlier hiked by 4.50 per kg by in Delhi in December last year. The price of cooking gas piped to kitchens was increased by Rs. 5.15 per kg.

Then Delhi chief minister-designate Arvind Kejriwal had questioned the timing of the steep hike in CNG price which was second such hike in three months in the city. “CNG rates hiked in Delhi. Isn’t the time suspect?” Kejriwal had tweeted.

In a bid to reduce the price of CNG, the Delhi government had earlier decided to approach the Supreme Court to challenge Centre’s cut in allocation of cheaper domestic natural gas to the national capital following an order by the Gujarat high court.

Following a Gujarat HC order, the Centre had ordered all of domestically available natural gas for city gas projects to be equitably distributed among all the companies in the country than convert the fuel into compressed natural gas  for sale to automobiles.