Mahanagar Gas (MGL) has hiked the price of compressed natural gas (CNG) by ₹1.50/kg to ₹75/kg in Mumbai. Further, the price of domestic piped cooking gas (PNG) is also increased by ₹1 per standard cubic metre (SCM), to ₹48/SCM.
The price rise is effective in Mumbai and its surrounding areas from late night on July 8 and July 9, PTI reported.
The reason for the price hike is due to a shortfall in domestic gas allocation to MGL and and rising gas costs, it said.
"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.
Gas from ONGC fields makes up for 66-67 per cent of CNG demand and the rest has to be imported.
“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. Even after the minor increase, MGL's price of CNG and domestic PNG are amongst the lowest in the country,” the company said.
The price hike in India's financial capital comes weeks after Indraprastha Gas, on June 22, also increased CNG rates in national capital New Delhi due to rising input costs. In Delhi, CNG now costs ₹75.09 (up by ₹1/kg), while PNG price has remained unchanged at ₹48.59/SCM.
(With inputs from PTI)
