What is the story about?
Mumbai: Mahanagar Gas Limited (MGL) has announced a hike in the prices of both CNG and domestic PNG in Mumbai. The price of CNG has been increased by Rs
2 per kg, while domestic PNG will cost Re 1 more per standard cubic metre (SCM). Following the revision, CNG will now be priced at Rs 88 per kg in Mumbai and adjoining areas. The new rates will come into effect from midnight on September 1, according to the company.
CNG Hike In Delhi
Meanwhile, CNG users in Delhi-NCR and several other cities are set to face another price increase, with Indraprastha Gas Limited (IGL) raising the rate by Rs 3.89 per kg. The hike comes amid a significant increase in the cost of imported liquefied natural gas (LNG) and was effective from August 29.
With the latest revision, CNG will be available at Rs 86.98 per kg in Delhi. Consumers in Noida and Ghaziabad will pay Rs 95.59 per kg, while the revised rate in Gurugram will stand at Rs 92.01 per kg.
IGL attributed the increase to elevated international LNG prices, noting that imports account for a substantial share of the gas used for CNG. The company said the rise in global LNG costs, partly linked to the ongoing conflict in the Middle East, has increased its input expenses, making the latest revision necessary to partly absorb the additional burden.
CNG prices vary across states due to differences in Value Added Tax (VAT) rates, much like petrol and diesel prices. The latest revision marks the fifth CNG price hike this year. The previous increase came in May, when IGL raised rates by a total of Rs 6 per kg through four separate revisions over a 10-day period.
The repeated increase in CNG prices has also had an impact on transport and freight costs across Delhi-NCR, where auto-rickshaws, taxis and goods carriers largely depend on CNG. Meanwhile, the Middle East conflict has entered its sixth month, pushing crude oil prices above $90 per barrel, although they remain below the earlier peak of $126 per barrel recorded during the previous phase of the conflict.
