CNG And PNG Price Hike: After Delhi, Mahanagar Gas Ltd (MGL) revised prices for compressed natural gas (CNG) and domestic piped natural gas (PNG) in and around Mumbai on Monday. The price of the CNG has been hiked by Rs 1.50 per kg, bringing the revised price to Rs 75 per kg, inclusive of all taxes. Meanwhile, the price of domestic PNG will rise by Rupee 1 per standard cubic metre (SCM), resulting in a new price of Rs 48 per SCM in and around Mumbai. Notably, these prices will be effective from midnight tonight.
Reasons Behind the CNG and Domestic PNG Price Hike
The firm said that 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.
On June 22, Indraprastha Gas Ltd, the city gas license holder for the national capital and adjoining cities, hiked the 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. Last week, Gujarat Gas increased the price of industrial natural gas by Rs 2 to Rs 2.48 per SCM starting from July 4 this year for the Morbi region in Gujarat, which hosts India's largest ceramic clusters. (Inputs From PTI)
