New Delhi/Chennai, Mar 8 (IANS): Compressed Natural Gas (CNG) players like GAIL (India) Limited, its wholly owned subsidiary, GAIL Gas Limited and AG&P Pratham on Saturday announced a reduction of Rs 2.50/kg in their retail prices.

The price cut comes into effect in the locations where the companies retail their CNG.

The move comes close on the heels of Indraprastha Gas Limited (IGL) reducing the selling price of gas in Delhi and the National Capital Region (NCR) by Rs 2.50 per kg with effect from Thursday.

This reduction underscores GAIL's commitment to offering environmentally friendly fuel solutions at competitive prices, in line with the nation's efforts to combat pollution and reduce carbon emissions.

“The decision to lower CNG prices comes at a crucial time when the automotive industry is witnessing a surge in the production and adoption of CNG vehicles by leading manufacturers such as Suzuki Motors Tata, Hyundai and Mahindra,” GAIL said in a statement.

With this price reduction, GAIL aims to facilitate the transition towards cleaner and greener transportation options, ensuring a sustainable future for generations to come, the statement added.

On its part, AG&P Pratham said it has cut its retail price from March 7 onwards in cities it operates in Kerala (Alappuzha, Kollam, Thiruvananthapuram – current price Rs 85.50/kg) and Andhra Pradesh (Nellore Rs 91.50/kg, Chittoor, Tirupati-Rs 91.50/kg, Anantapur and Kadappa Rs 91/kg).

According to Thivahar Bethune, VP Marketing, AG&P Pratham, three-wheeler auto-rickshaws, cars, small commercial vehicles, trucks and bus owners using CNG fuel can now save up to 35 per cent and 50 per cent compared to diesel and petrol respectively.

In Kerala, AG&P Pratham currently operates 34 CNG stations and plans to set up over 150 CNG stations and in Andhra Pradesh, it currently operates 42 CNG stations and plans to set up over 200 CNG stations in the coming years.