At a time when petrol and diesel prices are afire in the wake of rise in crude oil prices amid the Russia-Ukraine war, CNG will be cheaper in Maharashtra from today, April 1, as the state government has reduced the value-added tax (VAT) from 13.5 per cent to 3 per cent. In Mumbai and the rest of Maharashtra, CNG prices will be reduced by Rs 8 per kg. In Mumbai, it will decrease to Rs 58 per kg, from Rs 66 per kg, while in coastal Ratnagiri, it will drop down to Rs 74.90 per kg, from Rs 82.90 per kg.
Maharashtra Deputy Chief Minister and Finance Minister Ajit Pawar had, in the annual state budget for 2022-23, announced that the government would initiate measures to bring down CNG prices. The government has issued the gazette notification in this regard.
“The reduction in CNG prices due to the decrease in VAT will benefit autorickshaw, taxi and private vehicle users, public transport undertakings and the public. Besides, the fall in prices of piped natural gas will also help households,” Pawar had said.
The government is expected to take a hit of Rs 800-Rs 1,000 crore due to the cut in VAT on CNG, Pawar had announced. Further, he had hoped that the government move to cut the VAT would encourage the use of environment friendly natural gas.