CNG, PNG prices hiked by 6 kg in Mumbai

In Mumbai, the retail price of compressed natural gas CNG and piped natural gas PNG have been hiked by 6 kg and 4 kg respectively. According to state gas utility Mahanagar Gas Limited MGL, CNG's retail price is 86 kg, while domestic PNG sells for Rs 52.50 kg, while the cost of petrol is down to 45 per cent, while PNG and LPG is at 11 per cent. MGL attributed the rise in prices to a 40 per cent increase in input prices by the government from October 1. The average price from July 2021 to June 2022 is used to determine the prices for October 1 to March 31. MGL said the government has reduced the allocation of gas to MGL by 10 per cent and fell in the rupee apart from raising prices, leading to higher sourcing costs.

The government hiked natural gas prices by 40 per cent on September 30 to record levels citing high global prices. The rate at which old fields were procured was raised 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 and increase prices by Rs 9 per kg. The brokerage said that this would reduce CNG's discount to petrol diesel from 45 30 per cent to 40 20 per cent for IGL. The discount for MGL would drop from 45 30 per cent to 40 20 per cent.