After a massive 62 per cent hike in the prices of domestically produced gas announced by the Center last week, Mahanagar Gas has increased the retail price of Compressed Natural Gas (CNG) and Piped Natural Gas (PNG) by how much? ₹2 each with immediate effect.
The Company is constrained to increase the base price of CNG in view of the steep increase in the supply side cost ₹by 2/Kg and domestic PNG ₹2/SCM Mumbai and its surroundings, MGL said in a statement on Monday.
Noting that the price of re-gasified liquefied natural gas is also now at historic highs, MGL said these combinations have resulted in a significant increase in the cost of procuring gas.
This has forced the firm to pass the price revision in a progressive manner as the rate hike from the supply side is too large to be passed in one go.
Accordingly, the revised delivery price inclusive of all taxes of CNG and Domestic PNG in and around Mumbai will be ₹54.57/kg and ₹32.67/scm for Slab 1 customers and ₹38.27/SCM for Slab 2 customers respectively.
Even at the new prices, CNG is 65 per cent cheaper than petrol and 44 per cent cheaper than diesel. Domestic PNG is 34 per cent cheaper than LPG.
On 1 October, the center raised the price of domestically produced natural gas to US$2.90 per million British thermal unit from farms and to US$6.13 per mmBtu for gas produced from difficult areas such as the deep sea.
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