Synopsis:
CNG Price Hiked By Rs 1.50 Per Kg In Mumbai, Piped Cooking Gas Price Also Increased By Rs 1 Per SCM.The Mahanagar Gas Limited said the price rise is effective in Mumbai and its surrounding areas from July 9.
In a major development, the Mahanagar Gas Limited (MGL) on Tuesday hiked the prices of compressed natural gas (CNG) by Rs 1.50 per kg to Rs 75 per kg in Mumbai. Apart from this, the prices of domestic piped cooking gas (PNG) are also increased by Rs 1 per standard cubic metre (SCM), to Rs 48/SCM. The Mahanagar Gas Limited said the price rise is effective in Mumbai and its surrounding areas from July 9, PTI news agency reported.
Why CNG Price Hiked in Mumbai?
On why the CNG price was hiked in Mumbai, the Mahanagar Gas Limited said it is due to a shortfall in domestic gas allocation to MGL and and rising gas costs.
“To meet the increasing volume of CNG and domestic PNG segments and due to further shortfall in domestic gas allocation, MGL is sourcing additional market priced natural gas (imported liquid natural gas or LNG) which has resulted in higher gas cost,” the firm said in a statement.
Natural gas pumped out of the ground and seabed is turned into CNG for running automobiles and piped to households for cooking. But supplies from state-owned Oil and Natural Gas Corporation (ONGC’s) domestic fields have not kept pace with the demand.
Revised Rates to be Effective From Today
Mahanagar Gas Ltd, which retails CNG to automobiles and piped natural gas to households for cooking purposes in Mumbai and surrounding cities, said the increased prices will come into effect from the intervening night of July 8 and 9.
“To meet the increasing volume of CNG and domestic piped natural gas (PNG) segments and due to further shortfall in domestic gas allocation, MGL is sourcing additional market priced natural gas (imported LNG) which has resulted in higher gas cost,” the firm said in a statement.
To “partially offset the increase in gas cost”, MGL has increased the delivered price of CNG by Rs 1.50 per kg and domestic PNG by Re 1 per standard cubic meter in and around Mumbai.
Accordingly, the revised delivered prices inclusive of all taxes of CNG will be Rs 75 per kg and domestic PNG price will be Rs 48 per scm in and around Mumbai.
Last CNG Price Hiked in June
On June 22, Indraprastha Gas Ltd, the city gas license holder for the national capital and adjoining cities, hiked CNG price by Re 1 per kg to Rs 75.09 in Delhi. It, however, had not touched PNG rates, which continue to be priced at Rs 48.59 per scm.
“Even after the above revision, MGL’s CNG offers attractive savings of about 50 per cent and 17 per cent as compared to petrol and diesel, respectively, at current price levels in Mumbai, while MGL’s domestic PNG continues delivering unmatched convenience, safety, reliability and environmental friendliness to consumers,” the company said. “Even after the minor increase, MGL’s price of CNG and domestic PNG are amongst the lowest in the country”.
Natural gas pumped out of the ground and seabed is turned into CNG for running automobiles and piped to households for cooking. But supplies from state-owned Oil and Natural Gas Corporation (ONGC’s) domestic fields have not kept pace with the demand. Gas from ONGC fields makes up for 66-67 per cent of CNG demand and the rest has to be imported.
FAQ’s:
What are the new prices of CNG and PNG in Mumbai?
The new price of CNG is Rs 75 per kg, and the new price of domestic PNG is Rs 48 per standard cubic meter (SCM).
When did the new prices come into effect?
The new prices came into effect from the intervening night of July 8 and 9, 2024.
Who announced the price hike?
Mahanagar Gas Limited (MGL) announced the price hike.
What is the current rate of CNG in Delhi?
As of the last hike on June 22, the rate of CNG in Delhi is Rs 75.09 per kg.
What are the benefits of using CNG and PNG despite the price increase?
CNG and PNG continue to offer convenience, safety, reliability, and environmental friendliness to consumers. They also provide significant cost savings compared to petrol and diesel.
