CNG gets more expensive in Mumbai: MGL announces price hike effective at midnight

Mahanagar Gas Ltd (MGL) has announced an increase in the prices of compressed natural gas (CNG) and piped natural gas (PNG) for domestic use in Mumbai and its surrounding areas. The revised prices will take effect from midnight, July 8 to July 9. This price hike is in response to increased input costs, according to a statement released by the city gas distribution company.

Key Highlights:

Revised Prices:

The price of CNG will increase by Rs 1.50 per kilogram, raising it to Rs 75 per kilogram, inclusive of all taxes.

The price of domestic PNG will increase by Re 1.00 per standard cubic meter (SCM), setting the new rate at Rs 48 per SCM, inclusive of taxes.

Reason for the Hike:

MGL cited increased costs in sourcing additional natural gas at market prices to meet the growing demand in both the CNG and domestic PNG segments.

The company mentioned a shortfall in domestic gas allocation as a contributing factor to the price increase.

Service Area:

Mahanagar Gas Ltd provides CNG for vehicles and piped natural gas for cooking purposes across Mumbai and its neighboring cities.

Comparison with National Capital:

Last month, Indraprastha Gas Ltd (IGL) in New Delhi increased the CNG rate by Re 1, setting it at Rs 75.09 per kilogram, while maintaining the PNG price at Rs 48.59 per SCM.

Natural Gas Usage:

Natural gas, extracted from the ground and seabed, is converted to CNG for automotive use and is piped to households for cooking.

This price adjustment by MGL comes amid rising natural gas prices globally and aims to offset the financial impact on the company due to the increased costs of gas procurement.

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