This is no April Fools’ joke and there is actually something to cheer about. Amidst the continuous hike in fuel prices namely petrol and diesel; the prices of Compressed Natural Gas (CNG) fell substantially by Rs 6 per kg. Thus motorists will now be able to fill up their tanks with gas for Rs 60 per kg from April 1; which used to be Rs 66 per kg.
This is following Maharashtra government’s decision to reduce VAT on CNG from 13.5 percent to 3 percent making CNG fuel cheaper across the state. As per the notification issued by the Finance Department, CNG will be cheaper in the state from the 1st of April and will benefit auto-rickshaws, taxi drivers, passenger vehicles as well as citizens.
On March 31, Mahanagar Gas Limited (MGL) stated that consequent to the reduction in the VAT on natural gas from 13.5% to 3%, w.e.f. April 01, they are pleased to pass on the entire benefit to the end consumers. Accordingly, the price of Compressed Natural Gas (CNG) is reduced by Rs 6/Kg and Domestic Piped Natural Gas (PNG) is reduced by Rs 3.50/SCM in and around Mumbai effective from midnight of March 31 and early morning of April 01.
“The revised delivered prices inclusive of all taxes of CNG will be Rs 60/Kg and Domestic PNG Price will be Rs 36/SCM in and around Mumbai. The revised price of CNG offers attractive savings of about 65% and 41% as compared to petrol and diesel respectively at current price levels in Mumbai. MGL’s Domestic PNG offers around 32% saving as compared to current price of Domestic LPG while delivering unmatched convenience, safety, reliability and environmental friendliness to consumers,” read a statement sent by MGL.
This decision is also important for pollution control and motivating more people to buy CNG vehicles. For instance the four Regional Transport Offices (RTOs) in Mumbai namely Tardeo, Andheri, Wadala and Borivali have registered 3863 vehicles running on Petrol/CNG since January this year.
Of these Tardeo RTO registered 1173 vehicles, Wadala RTO registered 1080 vehicles, 611 vehicles in Andheri RTO and 999 vehicles in Borivali RTO; running on Petrol/CNG. In March the four RTOs registered 1444 vehicles running on Petrol/CNG, while in February these RTOs registered 1216 vehicles on Petrol/CNG which is an increase of almost 19%.
Moreover this will also benefit the auto rickshaws and taxis of Mumbai that run on CNG. The unions have been demanding for a fare hike since February 2021; the prices of CNG rose drastically from Rs 49.40 per kg until now. Meanwhile as on March 31, the prices of diesel touched Rs 100.94 per litre and that of petrol is Rs 116.72 per litre.
