NEW DELHI:
The government had in October and November last year cut supplies of low-priced natural gas coming from old fields such as Mumbai High and Bassein fields in the Bay of Bengal, to city gas retailers by as much as 40% in view of limited output.
This led to city gas retailers hiking CNG prices by ₹2-3 per kg and threatening more increases as they replaced lost volumes with higher-priced input fuel.
The price hike made CNG less attractive when compared to alternate fuels like diesel. To resolve this, the Ministry of Petroleum and Natural Gas in a December 31 order rejigged some allocations of gas produced from below ground and undersea.
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