City gas distribution (CGD) companies in India are expected to increase the retail prices of compressed natural gas (CNG) due to a second reduction in the allocation of cheaper Administered Pricing Mechanism (APM) gas by the government within a month.
The Petroleum and Natural Gas Regulatory Board (PNGRB) has emphasized the importance of keeping CNG prices competitive with petrol and diesel to ensure growth in the sector. Gajendra Singh, a member of the PNGRB, has highlighted that if CNG prices surpass those of traditional fuels, it could hinder business expansion and have a negative impact on consumers.
The government has reduced APM gas allocation to CGD companies, including Indraprastha Gas Limited (IGL) and Mahanagar Gas Limited (MGL), by 20 percent, in addition to a previous reduction of the same magnitude.