Shares of Mahanagar Gas Ltd ended at Rs 889.10, up by Rs 2.70, or 0.30 percent on the BSE.
Mumbai gas distributor, Mahanagar Gas Ltd (MGL), said on Friday, November 4, it is increasing the retail price of compressed natural gas (CNG) by Rs 3.5 per kilogram to Rs 89.50 and of piped natural gas (PNG) by Rs 1.5 per unit to Rs 54 from midnight of November 5, 2022.
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This is the second revision since October when the Centre had increased the price of domestically produced gas, supplied with an administered price mechanism (APM), by 40 percent for the second half of the fiscal, which came atop a 110 percent spike in April for the first half.
On shortage in the supply of APM gas, MGL said the supply has been cut by 10 percent, forcing it to source the fuels from outside at a substantially higher cost as the demand for gas has not come down yet.
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MGL claimed that even at the revised level CNG is about 42 percent cheaper than petrol in the megapolis, while PNG is cheaper by around 8 percent compared to current LPG.
MGL distributes gas to 1.98 million households and over 4,067 small commercial and 360 industrial establishments in and around Mumbai.
The company also supplies CNG to vehicles in Mumbai, Thane, Mira-Bhayander, Navi Mumbai and beyond. It has 296 CNG filling stations in Mumbai, Greater Mumbai, Thane, Navi Mumbai and Panvel.
Natural gas, which is extracted from below the Earth's surface, is converted to CNG for running automobiles and piped to household kitchens for cooking. It is also used to generate electricity and manufacture fertilisers. Prices vary from city to city depending on the incidence of local taxes such as VAT.
(Edited by : Shoma Bhattacharjee)
First Published: IST