CNG price in Mumbai shoots up by Rs 6/kg

4 Oct 2022 , 09:10 AM

Compressed natural gas (CNG) and piped natural gas (PNG) retail prices in and around Mumbai have increased starting at midnight on Monday by Rs6/kg and Rs4/SCM, respectively.

Accordingly, domestic PNG would cost Rs52.50 per SCM, and the new retail price of CNG will be Rs86/kg, according to a statement released by MGL on Monday night.

The government-run corporation attributed the sharp rise in retail pricing and supply reduction to the government’s 40% hike in input prices, which went into effect on October 1.

On September 30, the petroleum pricing & analysis division of the energy ministry released new rates for the six months beginning on October 1; domestically produced gas prices saw a sharp 40% spike. The same had been raised by a considerably greater 110% on April 1, citing growing global prices.

The government adjusts gas prices twice a year, from October 1 to March 31 and from April 1 to September 30. Therefore, the price for the period of October 1 to March 31 is based on the average price between July 2021 and June 2022.

MGL claimed that in addition to raising costs, the government had also decreased its allotment of gas to MGL by 10%, forcing MGL to purchase gas from the market at a significantly greater cost. The rupee’s decline was mentioned as another justification for the increase.

With the increase, the price difference between CNG and gasoline has decreased to 45%, while that between PNG and LPG has decreased to just 11%.

In response to skyrocketing worldwide gas costs, the government increased natural gas rates on September 30 by 40% to record highs.

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