If you drive a CNG vehicle, then you need to make your budget again. CNG prices may increase in the coming days. The reason for this is the government's decision to cut the supply of gas from domestic quota to gas companies in a period of one month. The government first cut it on October 16 and now it is going to be cut once again from November 16.

Indraprastha Gas Limited (IGL), which supplies CNG and PNG in Delhi-NCR, says that cutting domestic gas supply by companies will affect their profitability. The government has cut this supply twice in a row.

CNG may become expensive

The government's decision to cut domestic gas supply will affect the financial health of the companies. If their profitability decreases, then the companies will be forced to compensate for it from the customers. The domestic supply quota of companies supplying PNG to homes and CNG for vehicles has now been cut by 20 percent. Whereas earlier on October 16, it was cut by 21 percent.

Gas companies find it cheaper to supply domestically produced gas. In this way, their overall cost comes down and they are able to supply PNG and CNG to the people at a lower price. In return for this reduction, they will have to buy gas imported from abroad, which is expensive.

Information sent by GAIL

IGL says that according to the information sent by GAIL (India) Limited, the gas received by gas companies from the quota of domestic gas supply has been reduced from 16 November 2024. This is about 20 percent less than the previous allocation. This will adversely affect the profits of the company.

IGL currently gets domestic gas allocation at the government-determined price of $6.5 per million British thermal units (MBTU). The alternative is imported gas, which costs twice the price of domestic gas.