Mahanagar Gas (MGL) announced on July 8 that it will increase the prices for CNG and domestic piped natural gas (PNG) in and around Mumbai starting July 9 to counter the rising input costs. According to the state-run company’s statement, the price of delivered CNG will go up by Rs 1.5 per kg, while domestic PNG will see an increase of Rs 1 per SCM.
With this hike, the revised prices, inclusive of taxes, will be Rs 75.00 per kg for CNG and Rs 48 per SCM for domestic PNG in the Mumbai area. The company stated that this adjustment is necessary to cover the additional costs of importing natural gas.
MGL explained that the price increase is needed to meet the growing demand for CNG and domestic PNG, as well as due to a further reduction in domestic gas allocation. To compensate for the shortfall, MGL is procuring additional market-priced natural gas (imported LNG), which has led to higher costs.
The company’s shares closed 1.97 percent lower at Rs 1,666 on the NSE.
On June 22, Indraprastha Gas Ltd, the city gas distributor for Delhi and surrounding areas, raised the CNG price by Re 1 per kg to Rs 75.09 in Delhi. However, the PNG rates remained unchanged at Rs 48.59 per SCM.
“Even after this revision, MGL’s CNG offers attractive savings of about 50 percent and 17 percent compared to petrol and diesel, respectively, at current prices in Mumbai. MGL’s domestic PNG continues to deliver unmatched convenience, safety, reliability, and environmental friendliness to consumers,” the company stated.
The company also noted that “even after the minor increase, MGL’s prices for CNG and domestic PNG remain among the lowest in the country.”
Natural gas extracted from the ground and seabed is converted into CNG for automotive use and piped to households for cooking. However, supplies from state-owned Oil and Natural Gas Corporation (ONGC) domestic fields have not kept up with demand. ONGC fields provide 66-67 percent of the CNG demand, with the remainder being met through imports.
