CNG, PNG prices increased in Mumbai: Check new rates
What's the story
Mahanagar Gas Limited (MGL) has announced a hike in the price of Compressed Natural Gas (CNG) and domestic Piped Natural Gas (PNG) in Mumbai. The price of CNG has been increased by ₹2 per kg, while domestic PNG will now cost ₹1 more per standard cubic meter (SCM). The revised CNG price is ₹88/kg in Mumbai and surrounding areas from September 1.
Reasons
MGL cites Middle East crisis as reason for price hike
MGL has attributed the price hike to two major factors: the ongoing crisis in the Middle East and strong demand for CNG.
The company said that the geopolitical situation has led to a sharp rise in input gas prices linked to international indices.
A large portion of the gas supplied for CNG comes from imported spot regasified liquefied natural gas (RLNG), which has also become costlier.
Impact
Uninterrupted supply of CNG to consumers ensured: MGL
The ₹2 increase in CNG prices will only partially offset the rise in input costs, MGL said.
The company added that this move is aimed at ensuring uninterrupted supply of CNG to consumers.
Notably, some 13 lakh CNG vehicles across Mumbai, Thane, Raigad, Ratnagiri, Latur, and Dharashiv in Maharashtra as well as Chitradurga and Davangere in Karnataka depend on MGL's gas distribution network.
Household impact
Price revision to impact domestic PNG consumers
The price revision will also affect domestic PNG consumers, with MGL increasing the price by ₹1 per SCM. This will impact some 30 lakh households.
The move comes just days after Indraprastha Gas Limited (IGL), which supplies CNG in Delhi-NCR and nearby areas, hiked its CNG price by ₹3.89/kg to ₹86.98/kg due to higher input costs.