Mahanagar Gas on Monday hiked the prices of compressed natural gas (CNG) and piped natural gas (PNG) by Rs 2 in Mumbai and the surrounding region with effect from midnight October 4, 2021. The revised price of CNG is Rs 54.57 per kg and for PNG is Rs 32.67 per SCM.
Given the massive increase in supply-side cost, the company is constrained to increase the base price. Noting that the re-gasified liquefied natural gas price is also at a historical high now, MGL said these combinations have resulted in a significant increase in the cost of gas being procured by it.
This has forced the firm to pass on the price revision in a progressive manner as the rate hike from the supply side is too large to be passed on at one go, it added.
Even at the new prices, CNG is cheaper by 65 percent compared to petrol and 44 percent in the case of diesel. Domestic PNG is cheaper by 34 percent as against LPG.
On October 1, the Centre increased the price for domestically produced natural gas from fields to USD 2.90 per million British thermal unit and for gas produced from difficult fields such as deepsea to USD 6.13 per mmBtu.
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(Edited by : Yashi Gupta)
First Published: IST