CNG, PNG prices hiked by ₹2 in Vadodara, household and commuting expenses to rise

Residents of Vadodara have been hit by another price increase as Vadodara Gas Limited (VGL) has raised the prices of both Compressed Natural Gas (CNG) and Piped Natural Gas (PNG) by ₹2.

The new rates came into effect immediately and are expected to increase the monthly expenses of thousands of households, vehicle owners, and businesses across the city. Under the revised rates, CNG now costs ₹85.95 per kg, up from ₹83.95 per kg. Domestic PNG, which is widely used for cooking in homes, has increased from ₹51.74 to ₹53.74 per standard cubic meter (SCM). Commercial PNG rates have also been increased from ₹69.50 to ₹71.50 per SCM.

According to VGL, the price hike has become necessary due to a reduction in the allocation of natural gas supplied under the government's Administrative Price Mechanism (APM). Households using PNG for daily cooking will see higher monthly gas bills, while people using CNG-powered vehicles will have to spend more on transportation.

Small businesses, restaurants, and commercial establishments that rely on PNG may also face increased operating costs, which could eventually lead to higher prices for consumers. 

This is not the first time gas prices have been revised. In recent years, VGL has periodically increased tariffs because of fluctuations in natural gas supply and rising market prices. 

Vadodara Gas Limited is a joint venture between GAIL Gas Limited and the Vadodara Municipal Corporation. The company supplies PNG to homes, commercial establishments, and industries, while also operating CNG stations for vehicles across Vadodara and nearby areas. 

The price hike comes at a time when people are already struggling with rising costs of food, transportation, electricity, and other essential services. While VGL says the revision is unavoidable because of higher procurement costs, consumers are worried about its impact on their day-to-day expenses.