Torrent Gas Pune slashes CNG price by Rs 6 to Rs 62.90/kg

Torrent Gas, Pune, announced on Friday that it has slashed CNG price from Rs 68.90/kg to Rs 62.90/kg in Pune District with effect from April 1, 2022.

The change in prices comes after the decision of the Maharashtra government to reduce value added tax (VAT) from 13.5 per cent to 3 per cent.

"This initiative of Government of Maharashtra comes as a great relief for private vehicle owners and public & private  transporters including buses, taxis and autorickshaws," Torrent Gas said in a statement.

Earlier in the day, the Central government doubled the price of domestically produced natural gas for six months beginning April 1 due to spike in global energy rates.

The new rates reflect the spike in prices at the global benchmarks - US-based Henry Hub, Canada-based Alberta gas, UK-based NBP and Russia gas - as well as in rates of liquefied natural gas (LNG) in 2021 following a supply crunch with return of demand after devastation by pandemic.

The increase in gas price is likely to result in a 10-15 per cent rise in CNG and piped cooking gas rates in cities such as Delhi and Mumbai, industry, according to PTI.

The government sets the price of gas every six months -- on April 1 and October 1 -- each year based on rates prevalent in gas surplus nations such as the US, Canada and Russia.

Meanwhile on Friday, for the second time in 11 days there was no price hike on petrol and diesel rates. Petrol and diesel rates have continued to soar as state-owned oil retailers hiked the fuel prices for nine times in the last 10 days.

In Delhi, petrol and diesel are being sold at Rs 101.81 per litre and Rs 93.07 per litre respectively, while in Mumbai, which has the costliest fuel among metro cities, petrol and diesel prices per litre are at Rs 116.72 and Rs 100.94.

Prices were controlled since November 4 ahead of the assembly elections in five states, a period during which the cost of crude oil soared by about USD 30 per barrel.

(With PTI inputs)