New Delhi, May 19 (IANS) The price of compressed natural gas (CNG) is expected to rise by 20 percent with the union cabinet almost doubling the rate at which it is marketed by two state-owned exploration majors, it was announced Wednesday.
‘The cabinet has approved revision of the administered price mechanism of natural gas from the present Rs.3,200 mscm to Rs.6818 mscm,’ Information and Broadcasting Minister Ambika Soni told reporters here after a cabinet meeting here chaired by Prime Minister Manmohan Singh.
The hike relates to the natural gas produced by the Oil and Natural Gas Corporation and OIL India Ltd. The bulk of their supplies go to the power and fertiliser sectors.
Consumers in New Delhi and Mumbai will, however, be impacted as the price of CNG will rise by 20 percent as a result of the hike, Aporva Chandra, joint secretary in the ministry of petroleum and natural gas, told reporters.