Just a few days after raising the quota of subsidised LPG from 9 cylinders to 12, the government gave another big respite to consumers by slashing the prices of compressed natural gas (CNG) and piped natural gas (PNG).

The government on Monday announced a cut of Rs. 15 per kg, or nearly 30 per cent, in price of CNG. The price of PNG was slashed by Rs. 5 per cubic metre, or nearly 20 per cent.

Last month, the government had hiked the price of CNG in Delhi by Rs 4.50 per kg after retailers like Indraprastha Gas Ltd were compelled to purchase at least 20 per cent of their gas requirements from overseas. The price hike led to protests autorickshaw operators and attracted severe criticism from the leaders of newly elected Aam Aadmi Party-led government.

Oil Minister M Veerappa Moily yesterday announced that the government had decided to meet all the requirements of CNG and PNG from domestic fields, sparing the retailers from buying costlier LNG.

Announcing the price cuts, Mr. Moily added, "Our target is always to benefit the common man. If it helps the common man, we are happy. We want to give common man relief and in a way this is an anti-inflationary measure."

Many analysts are, however, calling move a pre-poll sop or a tool to outshine Delhi's Aam Aadmi Party-led government.

But, Moily claimed that the plan to supply 100 per cent domestic gas for city distribution had been under consideration for the past many years, and that the price cuts had nothing to do with the upcoming elections.