Cab and autorickshaw fares will shoot up.

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The new gas rate would result in 2.75 per cent increase in power tariff on an overall basis, and up to 20 per cent hike in the price of compressed natural gas (CNG) for automobiles.

CNG currently costs Rs 21.90 per kg in Delhi.

The price of CNG is likely to increase by about Rs 6 per kg, including increase in taxes and other charges, according to media reports.

Piped kitchen gas is also likely to cost about Rs 3.50 more per unit.

The decision to raise the gas price is perhaps the first step the government has taken to free up petroleum prices. The proposal for such a move had been hanging fire for more than a year.