homeindia NewsCNG, PNG prices hiked in Mumbai, check prices here

CNG, PNG prices hiked in Mumbai, check prices here

CNG, PNG prices hiked in Mumbai, check prices here
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By Asmita Pant  Oct 4, 2022 9:20:09 AM IST (Updated)

The revised retail price of CNG will be Rs 86/kg and domestic PNG will be Rs 52.50/SCM, MGL said in a statement on Monday evening.

Coming into effect from Monday midnight, city gas utility Mahanagar Gas has increased the retail price of compressed natural gas (CNG) and piped natural gas (PNG) by Rs 6 per kg and by Rs 4 per standard cubic meter (SCM), respectively, in and around Mumbai.

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Accordingly, the revised retail price of CNG will be Rs 86/kg, and domestic PNG will be Rs 52.50/SCM, MGL said in a statement on Monday evening.
The state-run company blamed the 40 percent increase in input prices by the government from October 1 for the steep increase in the retail prices along with the supply cut. The petroleum pricing and analysis cell of the oil ministry had announced new prices for the second half of the financial year on September 30.
Starting October 1, the domestically produced gas prices were increased by 40 percent. Earlier, the prices were increased by 110 percent citing rising international prices.
The government revises gas prices twice annually, from April 1 to September 30 and from October 1 to March 31. The price for October 1 to March 31 is based on the average price from July 2021 to June 2022.
The company said the government had also reduced gas allocation to MGL by 10 percent. Owning to this, MGL is required to source at a substantially higher cost from the market. It also cited the fall in the rupee as another reason for the hike.
With the hike, the price savings between CNG and petrol is down to 45 percent now, while that of PNG and LPG is down to just 11 percent.
The rate paid for gas produced from old fields, which make up for about two-thirds of all gas produced in the country, was hiked to $8.57 per million British thermal units from the current $6.1. Simultaneously, the price of gas from difficult and newer fields like the ones in Reliance Industries and its partner BP-operated deepsea D6 block in KG Basin was hiked to $12.6 per mmBtu from $9.92.
These are the highest rates for administered/regulated fields (like ONGC's Bassein field off the Mumbai coast) and free-market areas (such as the KG Basin). Also, this will be the third increase in rates since April 2019 and comes on the back of firming international prices. Piped natural gas price in the last year has risen by over 70 percent.
The price of gas from old fields, which are predominantly from state-owned producers like ONGC and Oil India, was more than doubled to $6.1 per mmBtu from April 1. Similarly, the rates paid for gas from difficult fields such as deepsea KG-D6 of Reliance went up to $9.92 per mmBtu from April 1 against $6.13 per mmBtu.
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