MGL cuts compressed natural gas prices by Rs 2.5 per kg

Mahanagar Gas, a state-run company, announced a reduction in the price of compressed natural gas (CNG) by Rs 2.5 per kg, bringing it down to Rs 73.50 per kg, effective from the midnight of March 5.

Before the price revision, CNG cost Rs 76 per kg in Mumbai and adjoining areas. This decision, as per a late-night statement from the company, is a result of a decrease in gas input costs.

"MGL has always been a customer-friendly company, consistently and promptly passing reductions in gas costs to its consumers to promote usage of natural gas," the company statement read. 

The revised CNG price now offers a 53% saving compared to petrol and a 22% saving compared to diesel at the current price point in the financial capital.

The company believes that this price reduction will boost the consumption of natural gas in the transportation sector, thereby contributing to a cleaner and greener India.

The price reduction is due to the lower cost of domestically produced High-Pressure High Temperature. This comes after auto unions demanded fare hikes due to various factors, including the price of CNG. 

MGL had previously reduced the CNG price by Rs 3 per kg on October 23, bringing it down to Rs 76 per kg. The fluctuation in CNG prices played a role in the adjustment of auto and taxi fares in 2022 when it peaked at around Rs 90 per kg. 

In 2023, the CNG price dropped by Rs 14 per kg for the benefit of the public.