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By CNBCTV18.com Jul 13, 2022 11:44:59 AM IST (Updated)
CNG PNG Price hiked by Rs 4/kg and Rs 3/SCM, the State-run Mahanagar Gas announced on Tuesday.
Mahanagar Gas has hiked the retail price of compressed natural gas (CNG) and piped natural gas (PNG) by Rs 4/kg and Rs 3/SCM, respectively, in Mumbai. The revised costs were put into effect from midnight of July 12.
The state-run utility attributed the increase to the rise in input costs and depreciation of rupee.
Asian and European liquefied natural gas (LNG) prices have surged due to the closure of the Freeport terminal in the US, which has resulted in a tightness in the LNG market. Dollar has peaked to a two-decade high, and hence the cost of imports has gone up.
Owing to the limited domestic gas allocation, Mahanagar Gas had been importing gas from overseas markets. To balance the costs, the retail price of CNG has been hiked by Rs 4/kg to Rs 80 and the domestic PNG price has been increased by Rs 3/SCM to Rs 48.50, in and around Mumbai.
Gujarat Gas has highest exposure to imported gas followed by Mahanagar Gas and then IGL.
Starting April 1, the Centre hiked the price of domestic and imported natural gas by over 110 percent. This had cancelled out the steep price reduction after the state slashed VAT to 3.5 percent.