NEW DELHI : The Mahanagar Gas Limited (MGL) has hiked the price of Compressed Natural Gas (CNG) by Rs 2 per kg and domestic piped natural gas (PNG) by Rs 1 per standard cubic metre (SCM). In Mumbai, the revised CNG price stands at Rs 88 per kg. The new rates will be effective from September 1.
According to MGL, the Middle East crisis has pushed up the price of natural gas linked to international benchmarks. “In view of the ongoing crisis in the Middle East, which has resulted in a significant increase in input gas prices linked to international indices, MGL has announced a revision in the prices of CNG,” the company said.
What Did The Company Say?
The company said that rising demand for CNG as another factor behind the price revision. A significant share of the gas supplied to the CNG segment comes from imported spot regasified liquefied natural gas (RLNG), which has become expensive in recent days.
The Rs 2 price hike in CNG, will only cover a part of the increasing input costs. The move is aimed to provide a hustlefree supply of CNG to the customers, MGL said. Significantly, around 13 lakh CNG vehicles across Mumbai, Thane, Raigad, Ratnagiri, Latur and Dharashiv in Maharashtra, as well as Chitradurga and Davangere in Karnataka, rely on MGL’s gas distribution network.
People using domestic PNG will also have to pay more. MGL has increased the price by Rs 1 per SCM, affecting around 30 lakh households.
The price hike comes days after Indraprastha Gas Limited (IGL), which supplies CNG in Delhi-NCR and adjoining areas, raised its CNG price by Rs 3.89 per kg to Rs 86.98 per kg. IGL had also cited higher input costs for the increase.
Will There Be More Price Hikes?
MGL did not clarify its statement on further price hikes, adding that it continues to “explore avenues to optimise costs and pass on benefits to consumers.” With spot RLNG prices tied to volatile international benchmarks, further revisions will depend on how the Middle East situation develops.
