MGL hikes PNG, CNG prices in Mumbai: Check rates
What's the story
Mahanagar Gas Limited (MGL) has increased the prices of domestic piped natural gas (PNG) and compressed natural gas (CNG) in the Mumbai Metropolitan Region (MMR). The new price for PNG is ₹52 per unit, an increase of 50 paise. Meanwhile, CNG is now priced at ₹86 per kg, up ₹2.
Price justification
MGL cites rise in gas procurement costs
MGL attributed the price hike to a sharp rise in gas procurement costs. This was due to a lower allocation of domestic gas, higher reliance on expensive sources of gas, and the depreciation of the Indian Rupee. The company is still looking at ways to optimize costs and pass on benefits to consumers.
Transport impact
Increased operating costs
The increase in CNG prices will raise operating costs for private vehicles, taxis, and public transport fleets that use CNG. However, despite the hike, CNG remains cheaper than petrol and diesel on a per-kilometer basis. This comes after recent hikes in petrol and diesel prices in Mumbai, which in turn have been impacted by the conflict in West Asia and the closure of the Strait of Hormuz.
Fuel prices
Petrol, diesel prices increased in Mumbai
On Monday, the prices of petrol and diesel in Mumbai were increased by ₹2.61 per liter and ₹2.71 per liter, respectively. This was the fourth hike in less than two weeks as global crude oil costs surged due to geopolitical tensions in the Middle East. Petrol now costs ₹111.21 per liter while diesel is priced at ₹97.83 per liter in Mumbai.
Global impact
Modi urges citizens to conserve fuel
The geopolitical tensions in the Middle East have caused volatility in energy prices. The US-Iran conflict has disrupted shipping flows through the Strait of Hormuz, which carries around 20% of global oil and LNG supplies. In light of these developments, Prime Minister Narendra Modi has urged citizens to conserve fuel and reduce non-essential travel to ease pressure on foreign exchange reserves.