The government's decision to cut domestic gas supplies by up to 20% to city retailers is likely to increase CNG prices by INR 4-6 per kg. To combat this, a reduction in excise duty might be considered,

In order to mitigate price impact, the government may opt for a cut in excise duty on CNG. Currently, the central government levies a 14% excise duty on CNG, which translates into Rs 14-15 per kg.

Government cuts domestic gas supplies to city retailers, leading to potential CNG price hike unless excise duty is reduced.

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,

For now, the retailers have not raised CNG rates as they are engaged with the Ministry of Petroleum and Natural Gas to find a solution, sources said.