From today, CNG to be dearer by Rs 6/kg in Mumbai Metropolitan Region, piped cooking gas by 4/unit

MUMBAI: From Tuesday, the prices of compressed natural gas (CNG) and piped natural gas (PNG) in the Mumbai metropolitan region will increase by Rs 6/kg and Rs 4/unit, respectively. The revised rates, inclusive of all taxes, of CNG will now be Rs 86 per kg and that of domestic PNG, Rs 52.50 per standard cubic meter (SCM).

The price hikes by Mahanagar Gas Ltd will put a burden on CNG-run buses, taxis, autos and private vehicles and around 20 lakh households using piped cooking gas. On August 17, MGL had reduced CNG price by Rs 6/kg and PNG price by Rs 4/unit.
While justifying the hike, an MGL statement said: "...since the increase in input gas cost is significantly large, MGL has decided to progressively recover such increased input gas cost... .Despite the rise, the revised MRP of CNG will offer a saving of about 45% compared to petrol at current price level in Mumbai. MGL's domestic PNG will offer around 11% saving as compared to current MRP of domestic LPG...".
The price of domestically produced gas under administered pricing mechanism (APM) has been revised by the Petroleum Pricing & Analysis Cell from October 1, 2022. The revised price reflects an increase of 40%, MGL said while substantiating the reason behind the hike.
"Besides, allocation of APM gas for CNG and PNG segments has also been concurrently reduced by 10% due to which MGL is required to source regasified liquid natural gas at a substantially higher cost to cater to the increasing demand," the MGL said.