homeindia News

MGL hikes CNG and PNG price in Mumbai for second time in a month

MGL hikes CNG and PNG price in Mumbai for second time in a month

MGL hikes CNG and PNG price in Mumbai for second time in a month
Read Time2 Min(s) Read
Profile image

By PTI Aug 3, 2022 9:19:00 AM IST (Published)

The Centre had increased the price of domestic and imported natural gas by over 110 per cent from April 1.

Within a month, city gas distributor Mahanagar Gas (MGL) announced a second price hike of Rs 6 per kilogram for CNG and by Rs 4 a unit for piped natural gas with immediate effect.

Recommended Articles

View All

The price revision comes amidst rising prices of natural gas at sources both internationally as well as for domestically drilled gas. Rising prices have forced suppliers and distributors to cut down on industrial supplies for the past many weeks.
This is the sixth price hike since April this year. "Due to the significant increase in input gas cost, we have decided to recover the cost. Accordingly, we've increased the retail price of CNG (Compressed Natural Gas) to Rs 86 (per kilogram) and domestic PNG (Piped Natural Gas) by Rs 4/SCM (standard cubic meter) to Rs 52.50 in and around Mumbai, effective from this midnight," MGL said in a statement.
The utility said the price hike is to meet the shortfall in domestic gas allocation, as it is forced to source additional market-priced natural gas to cater to the increasing requirement of CNG and PNG. The last increase was effected on July 12 when the state-run utility hiked the retail price of CNG by Rs 6 per kilogram and PNG by Rs 3/SCM.
The Centre had increased the price of domestic and imported natural gas by over 110 per cent from April 1. This had completely offset the steep price reduction announced by the state by way of slashing VAT on these fuels to 3.5 per cent from 13.5 per cent on April 1.
Despite liberalising the energy sector, the government still controls both the price and supply of natural gas to a large extent and prices and supply allocation is decided in advance twice a year. The April 1 hike is valid till end-September and the next revision will be announced on October 1.
Check out our in-depth Market Coverage, Business News & get real-time Stock Market Updates on CNBC-TV18. Also, Watch our channels CNBC-TV18, CNBC Awaaz and CNBC Bajar Live on-the-go!

Top Budget Opinions

    Most Read

    Market Movers

    View All
    Top GainersTop Losers
    CurrencyCommodities
    CompanyPriceChng%Chng