CNG becomes more expensive in Mumbai, new MGL prices to take effect at midnight; check latest rates

CNG Price Hike Mumbai: Mahanagar Gas Ltd (MGL) on Monday announced an increase in the prices of compressed natural gas (CNG) and piped natural gas (PNG) in Mumbai with effect from the midnight of July 8-9. The move was aimed at partially offsetting an increase in gas costs, according to a statement by the city gas distribution company. 

Here are five things to know about this news: 

• MGL said it is constrained to hike the price of CNG by Re 1.50 per kilogram and domestic PNG by Re 1.00 per standard cubic metre (SCM) in and around Mumbai. After the revision, the fuels will be sold at Rs 75.00 per kilogram and Rs 48.00 per SCM (both including taxes) in and around the city. 
• Mahanagar Gas retails CNG to automobiles and piped natural gas to households for cooking purposes in Mumbai and its surrounding cities.
• Why the price hike? MGL said that it is sourcing additional natural gas at the market price in order to meet increasing volumes in the CNG and domestic PNG segments and a further shortfall in domestic gas allocation. That has led to higher gas costs for the company, it added. 
• Last month, the prices of CNG and PNG was raised in the national capital. City gas distributor Indraprastha Gas Ltd (IGL) - which supplies CNG and PNG in and around New Delhi – had hiked the CNG rate by Re 1 to Rs 75.09 per kilogram in the national capital, while leaving the PNG price unchanged at Rs 48.59 per SCM.
• Natural gas pumped out of the ground and seabed is turned into CNG for running automobiles and piped to households for cooking. 

With inputs from agencies