The Oil and natural gas companies have decided to raise the price of CNG form 8th of June after the decision of the government. The state run explorers have been given the authority to provide natural gas by Rs 200 per thousand cubic meters which is double from the previous price.

But the government is not going to put an auction for it. The state run explorers like oil India and ONGC will gain around Rs 700 crore and Rs 5000 crore respectively.

The gas transport utility GAIL will gain Rs 150-200 crore as annual revenue by this decision of government. Hence Indraprastha Gas Ltd. (IGL) and Mahanagar Gas Limited (MGL), the natural gas suppliers will hike the price of CNG by Rs. 5.60 per kg and PNG by Re 1 per unit from 8th June. IGL and MGL are the vast suppliers of natural gas for the piped cooking and automotive fuels, who decided to raise the price after the cabinet decision without making auction.

The hike in the price will increase the cost of many sectors such as fertilizers, electricity which are linked with the natural gas. Since the new price revision of government controlled gas sector has linked to dollar the consumers would have to face certain frequent changes in price of the natural gas.