Mahanagar Gas has recently increased the retail price of Compressed Natural Gas (CNG) and Piped Natural Gas (PNG) in Mumbai, it announced on Wednesday. retail rate of cng Domestic PNG rates in and around Mumbai will increase by Rs 3 per standard cubic meter to Rs 48.50, while it will increase by Rs 4 per kg to Rs 80. new retail CNG and PNG prices It will be effective from midnight on July 13. The distributor said rising input costs and depreciating rupee have pushed up the prices of CNG and PNG.
“Mahanagar Gas Limited (MGL) has always tried to maintain price stability for its customers. However, as the increase in the cost of input gas is quite high, MGL has decided to recover such increased gas cost. Accordingly, MGL is constrained to increase the MRP of Compressed Natural Gas (CNG) by Rs 4.00 per kg and domestic PNG by Rs 3.00 per SCM in and around Mumbai,” MGL said in a statement.
The central government had increased the prices of domestic and imported natural gas by more than 110 per cent with effect from April 1. At that time also MGL had increased the prices of CNG and PNG. The distributor now has it that the falling rupee as well as rising cost costs were due to the hike in CNG and PNG prices from July 13.
This is the 10th time that CNG prices have been hiked in the last one year, with rates increasing by Rs 30 per kg between July 2021 and July 2022.
The Center had increased the price of domestic and imported natural gas by over 110 per cent with effect from April 1. It had completely eliminated the huge price reduction announced by the state by reducing the tax (VAT) on these fuels from 13.5 per cent to 3.5 per cent. 100% from 1st April
“The selling price of domestically produced natural gas was increased by the government by 110 percent” India With effect from 1st April 2022. In addition, the cost of re-gasified LNG is at historically high levels to offset the shortfall in domestic gas availability for the CNG and de-PNG segments. This combination has resulted in a significant increase in the cost of gas being procured by MGL,” the distributor had last said on April 30 at the time of the hike in prices.
“Being a customer centric company, MGL has always tried to maintain price stability for its customers. However, since the increase in the price of input gas is quite high, MGL has decided to progressively recover such increased gas cost,” it had said at the time.
Despite liberalizing the energy sector, the government still largely controls both the price and supply of natural gas. Prices and supply allocation are decided twice a year in advance. The rise in CNG prices came as international crude oil prices dipped below $100 a barrel on Wednesday.
read all breaking news, today’s fresh newswatch top videos And live TV Here.