Mumbai: In the country’s financial capital Mumbai, the gas distribution company Mahanagar Gas Ltd. (MGL) has increased the price of CNG by Rs 6 per kg. Apart from this, the price of piped cooking gas (PNG) has been increased by Rs 4 per unit (SCM). The new prices will be applicable from Monday night.
With this, the retail price of Compressed Natural Gas (CNG), which is used as fuel in vehicles in Mumbai and surrounding areas, has increased to Rs 86 per kg. At the same time, the price of domestic PNG will be Rs 52.50 per SCM.
Due to this increased price
The public sector company has said that the government has increased gas prices by 40 percent from October 1, due to which it has to take this step. The Petroleum Price and Analysis Cell under the Petroleum Ministry had on September 30 announced a massive 40 percent hike in the prices of domestically produced gas for the next six months from October 1. Earlier on April 1, gas prices were increased by 110 percent citing international prices.
Price increases twice a year
The government revises gas prices twice a year on April 1 and September 30. MGL has said that after this hike, the price savings between CNG and petrol has come down to 45 percent. At the same time, this difference between PNG and LPG has remained only 11 percent. Soon after the record increase in the prices of natural gas in other cities of the country too, CNG may become costlier by Rs 8 to 12 per kg, while the price of cooking gas can be increased by Rs 6.
Government hikes gas prices
The government last week increased the rate paid for gas produced from old gas fields to $8.57 per unit from the current $6.1 per million British thermal units (per unit). At the same time, the price of gas extracted from difficult areas has been increased from $ 9.92 to $ 12.6 per unit. On the basis of this rate, about two-thirds of the gas produced in the country is sold. Natural gas is a major raw material for making fertilizers as well as for generating electricity. It is also converted into CNG and piped (PNG) is also used for cooking food in the kitchen.
