Since the government has cut off roughly 20% of the cheaper, domestically generated natural gas supply to city retailers, the price of CNG for cars could rise by ₹4-6 per kilogram. Any prospective adjustments to the gasoline excise charge will likewise have an impact on the growth in fuel costs.

Natural gas extracted from various sites across India, including the Arabian Sea and the Bay of Bengal, is the primary raw material for producing CNG and piped cooking gas for households

One of the options is for the government to cut excise duty on CNG. Currently, the central government levies a 14 per cent excise duty on CNG, which translates into Rs 14-15 per kg. If this is cut, the retailers will not have to pass on the increased cost to consumers, they said.

Natural gas pumped from below the ground and from under the seabed from sites ranging from the Arabian Sea to Bay of Bengal within India is the raw material that is turned into CNG for sale to automobiles and piped cooking gas to households.

The government has slashed by up to 20 per cent the supplies of cheaper domestically produced natural gas to city retailers -- a move that may result in Rs 4-6 per kg hike in the price of CNG sold to automobiles,