Tripura’s CNG & PNG Price Hike Stokes Fresh Debate on Heavy Taxation

On Wednesday, Tripura’s transport department announced a noticeable jump in the cost of compressed natural gas (CNG) and piped natural gas (PNG). The new tariff—Rs 58 per kilogram for CNG and Rs 18 per cubic meter for PNG—represents a rise of about 12 % compared with the rates that were in effect just three months ago.

While the state government attributes the hike to “increased procurement costs and the prevailing market scenario,” many locals see a different culprit: the hefty 35 % tax levied on natural gas. That tax, a mix of excise duty, value‑added tax and other surcharges, has been a point of contention ever since it was first introduced in 2021.

“We’re already paying a lot for diesel and petrol, and now the gas we rely on for daily commutes and small businesses is getting more expensive,” said Ramesh Das, a motorbike taxi driver from Agartala. “If the tax isn’t reduced, people will simply go back to petrol, which defeats the whole purpose of promoting cleaner fuel.”

Industry representatives echo similar concerns. The Tripura Natural Gas Association (TNGA) released a statement noting that the 35 % tax pushes the effective price of CNG higher than diesel in many routes, undermining the state’s environmental goals. “A sustainable shift to natural gas can only happen if the end‑user feels the economic benefit,” the statement read.

On the other side, Finance Minister Pramod Das defended the tax, saying it funds critical infrastructure projects, including new pipelines and safety upgrades. “Revenue from natural‑gas taxation is earmarked for expanding the network to underserved districts,” he told reporters. “Without these funds, the state cannot meet its ambition of 70 % of vehicles running on CNG by 2028.”

The debate isn’t new. Last year, when the first round of price adjustments hit the market, consumer groups filed a petition in the Tripura High Court, arguing that the tax burden violated the principle of “reasonable cost” for essential services. The court’s response was a request for a detailed cost‑benefit analysis, which the state has yet to submit.

Comparatively, neighboring states like Assam and West Bengal levy a lower effective tax rate—around 20‑25 %—on natural gas, making Tripura’s rates appear disproportionately high. Economists suggest that the differential could drive cross‑border fuel smuggling, a risk the state is keen to avoid.

As the conversation continues, residents are left coping with the immediate impact. Small traders report a dip in sales as customers cut back on usage, while public transport operators warn of reduced fleet size if the current trend persists.

Whether the tax will be revisited remains uncertain, but one thing is clear: the price hike has rekindled a dialogue that goes beyond numbers, touching on environmental policy, fiscal priorities, and the everyday lives of Tripura’s citizens.