Mumbai: Mahanagar Gas Limited (MGL) hiked the price of compressed natural gas (CNG) and piped natural gas (PNG) in Mumbai and its surrounding areas. The revised price will come into effect from late night on July 8 and July 9.
Mahanagar Gas (MGL) has hiked the price of compressed natural gas (CNG) by Rs 1.50/kg to Rs75/kg. Further, the price of domestic piped cooking gas (PNG) is also increased by Rs 1 per standard cubic metre (SCM), to Rs 48/SCM.
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The reason for the price hike is due to a shortfall in domestic gas allocation to MGL and and rising gas costs. ‘To meet the increasing volume of CNG and domestic PNG segments and due to further shortfall in domestic gas allocation, MGL is sourcing additional market priced natural gas (imported liquid natural gas or LNG) which has resulted in higher gas cost,’ the firm said in a statement.
Earlier on June 22, Indraprastha Gas also increased CNG rates in national capital New Delhi due to rising input costs. In Delhi, CNG now costs Rs 75.09 (up by Rs 1/kg), while PNG price has remained unchanged at Rs 48.59/SCM.
Natural gas when compressed becomes CNG for use as fuel in automobiles. The same gas is also piped to household kitchens and industries for cooking and other purposes. But supplies from state-owned Oil and Natural Gas Corporation (ONGC’s) domestic fields have not kept pace with the demand. Gas from ONGC fields makes up for 66-67 per cent of CNG demand and the rest has to be imported.
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