Compressed natural gas (CNG) prices will likely fall over the next few days as the overall cost of gas has reduced for city gas companies, according to industry executives who didn’t want to be named.
State-run GAIL NSE 2.22 % will supply natural gas at $8.04 per mmBtu during the second fortnight of May to city gas companies for domestic use and transport, as per executives. This would help companies cut CNG rates by Rs 5-6 per kg, an executive said, adding that the reduction would vary from operator to operator.
GAIL’s supply price is higher than the rate of $6.10 that city gas companies pay for domestic gas but is much lower than the cost they incur in importing gas.
