
Retail price of compressed natural gas (CNG) and piped natural gas (PNG) have been hiked by Rs 6/kg and Rs 4/kg respectively in Mumbai. Price savings between CNG and petrol is down to 45 per cent while that of PNG and LPG stands at 11 per cent, according to state gas utility Mahanagar Gas Limited (MGL).
Latest CNG, LPG prices in Mumbai
Due to the latest revision in rates, CNG’s retail price stands at Rs 86/kg while domestic PNG sells for Rs 52.50/kg. MGL attributed the rise in prices to a 40 per cent increase in input prices by the government from October 1. Government revises gas prices twice from April 1 to September 30 and from October 1 to March 31.
Prices for October 1 to March 31 are decided on the basis of the average price from July 2021 to June 2022. MGL said the government has also reduced the allocation of gas to MGL by 10 per cent and fall in the rupee apart from raising prices, leading to rising higher sourcing costs.
Government hiked natural gas prices by 40 per cent on September 30 to record levels citing high global prices. Rate at which has produced from old fields was procured was hiked to $8.57 per million British thermal units from the current $6.1, as per the government’s Petroleum Planning and Analysis Cell (PPAC).
Brokerage Jefferies said Indraprastha Gas Limited (IGL) will have to raise CNG price by Rs 8 per kg while MGL will have to increase prices by Rs 9 per kg. The brokerage said, “This would reduce CNG’s discount to petrol/diesel from 45/30 per cent to 40/20 per cent for IGL. Similarly, the discount for MGL would reduce from 45/30 per cent currently to 40/20 per cent.”