CNG prices hiked by Rs 2, PNG up Re 1 across MMR from today, September 1

Starting today, September 1, the cost of Compressed Natural Gas (CNG) and Domestic Piped Natural Gas (DPNG) in the Mumbai Metropolitan Region will increase, according to Mahanagar Gas Limited (MGL). The price of CNG has risen by Rs 2 per kilogram, while DPNG prices have increased by Re 1 per standard cubic metre. As a result, the new rates are Rs 88 per kg for CNG and Rs 53 per SCM for DPNG.

MGL attributes this price increase to the ongoing crisis in the Middle East, which has led to a rise in international input gas prices. Additionally, MGL notes that a larger portion of the increased CNG demand was met through spot regasified liquefied natural gas (RLNG), whose price has also gone up. Consequently, MGL had to source RLNG at higher costs, which has contributed to the overall increase in input expenses.

The company claims that the latest revision will partially offset these higher input costs and help ensure a stable supply of natural gas to its customers. Nearly 12.93 lakh vehicles in the MMR, including auto rickshaws, taxis, private vehicles, and those operated by transport authorities, that use MGL-supplied CNG will be affected by these price hikes.

In May, MGL had already increased the CNG price to Rs 86 per kg and DPNG to Rs 52 per SCM due to higher gas procurement costs and the depreciation of the Indian rupee against the US dollar. Despite these price increases, MGL said it would continue to look for ways to optimize gas procurement and encourage wider use of PNG as an environmentally friendly alternative.