Days after the centre announced a hike in prices of natural gas by 40%, city gas distribution company, Mahanagar Gas Ltd (MGL) increased its retail price by ₹6/Kg starting today. The rise in prices is linked to the escalation in the input costs that have occurred due to a 10% reduction in the Administrative Price Mechanism (APM) gas.
With this, the price of CNG has reached ₹86/Kg in Mumbai and surrounding areas. Additionally, a ₹4/SCM hike has also been reported for PNG (Piped Natural Gas), taking the final price to ₹52.50/SCM.
Commute in Mumbai gets expensive
Reportedly, the hike in CNG price in Mumbai came into effect from Monday midnight. The main reason behind the price rise is said to be the 40% rise in input cost that is taken care of by the centre. The aforementioned rise in input cost came into effect on October 1. Notably, natural gas prices are revised by the government twice annually- April 1 to September 30 and October 1 to March 31.
Interestingly, now with the hike in gas prices, the price savings between CNG and petrol also comes down to 45% now, while that of PNG and LPG to just 11%.
Additionally, under its biannual revision, the centre also announced cuts in gas supply. As per the officials, the allocation of gas to MGL will now be reduced by 10%, forcing the city distributor to source gas from the market at a higher cost.