With the revision, the CNG will cost 30 per cent less than its original price and could cost Rs 35 per kg in Delhi and Rs 42 in Noida.
Oil Minister Veerappa Moily, while confirming the news, said the move was made to popularise the use of CNG as a means to check the rising pollution levels in various cities of the country.
The price of CNG was reduced by Rs 15 per kg and PNG by Rs 5 per cubic metre
Moily also said that the Indraprastha Gas Limited, the distributor of CNG in Delhi, along with the distribution firms in other cities will receive cheaper domestic gas. The prices would differ in the cities, depending on the local tax factor.
The surprise decision to cut CNG prices comes in the wake of the Cabinet's decision to raise the yearly cap on subsidised LPG cylinders per household from nine to 12. The decision is set to inflate the government's subsidy bill by a whopping Rs. 5,000 crore.