CNG Price Hike Alert: Dual Shock for Consumers as Allocation of Cheap Gas to Be Reduced from April 16

April 16, 2025 . Energy Desk, New Delhi: Bad news looms for CNG vehicle users and households using piped natural gas (PNG)—a sharp price hike may be on the horizon. Starting April 16, City Gas Distribution (CGD) companies like Indraprastha Gas Limited (IGL) and Mahanagar Gas Limited (MGL) will face a significant reduction in the allocation of cheap Administered Price Mechanism (APM) gas, potentially triggering a fresh round of price increases.

APM Gas Allocation Slashed for CGD Companies

Under the revised guidelines, the allocation of subsidized APM gas to CGD firms for CNG and domestic PNG will drop from 51% to 40%. This shift means that companies will now rely more on costlier New-Well gas, driving up their procurement costs.

An official familiar with the development, who chose to remain anonymous, stated that while no official announcement has been made yet, the internal directives are in place, and price hikes are likely in the coming days.

Why CNG Prices Are Set to Rise

The switch from APM to New-Well gas is expected to significantly increase input costs for distributors. According to Harshraj Agarwal, Executive Vice President at Yes Securities, this move has come as a surprise to the industry. Companies will have no option but to revise prices upward to maintain margins.

He added that firms are currently analyzing the situation and will take a call on pricing only after formal confirmation from the government.

Impact on Consumers: Double Blow for CNG and PNG Users

This reduction in subsidized gas allocation is expected to affect both:

• CNG Vehicle Owners Higher fuel costs directly impact daily commute and transportation expenses

• Households with PNG connections Domestic cooking gas bills may also rise in the coming weeks

The anticipated price hike will be especially burdensome for middle-class households already grappling with inflation in essential commodities.

What to Expect Next

• Official notification from IGL, MGL, and other distributors is awaited

• Revised pricing may be announced within the next few days

• Price adjustment likely to vary by city based on distribution and sourcing cost

Consumers are advised to stay updated via official websites of gas companies or mobile alerts to track changes in CNG and PNG tariffs.