Indore: Gaining rupee might bring down CNG price

Continuing with its gaining spree, Indian rupee rallied further against US dollar on Thursday and attained highest level against the US currency in the last one month. The strengthening of rupee is offering a glimmer of hope to thousands of CNG-fuelled vehicles with expected price reduction for this green fuel.

CNG, a 100% import-based commodity relies heavily on rupee-dollar ratio.

The partially convertible rupee closed at 61.77/78 per dollar compared to its close of 63.38/39 on Wednesday. The rupee rose 2.6 percent on day, its biggest single day rise since Aug. 29.  

Managing Director of Aavantika Gas Ltd (AGL), Pradip Madan told dna that price reduction for CNG could be pondered over if the Indian rupee maintains Rs 60 or 61 level against US dollar in near future.

"The price revision is only possible after month end as GAIL sends fortnightly bills for natural gas imports," he said, adding that magnitude of price reduction would only be finalised after receiving the import bill.

The MD added that Indian currency's free fall against the US dollar has brought about steep surge in the CNG price in the city in the last three months or so. 
The AGL is the only supplier of natural gas in Madhya Pradesh.

Significantly, after subsequent price revisions, CNG is now selling at Rs 72 per kg in the city. There are around 17,000 CNG-fuelled auto rickshaws and 2,500 other vehicles in the city.

Besides, AGL is planning to start two more CNG filling stations in the city. Once these outlets become functional, then the number of such outlets would surge to 11.