CNG, PNG price hiked in Mumbai: Check latest rates

CNG and PNG prices have been hiked in Mumbai by Mahanagar Gas Limited (MGL) by Rs 6/kg and Rs 4/ SCM, respectively. The state-run company blamed the 40 per cent increase in input prices by the government from October 1 for the steep increase in the retail prices along with the supply cut. The oil ministry's petroleum pricing & analysis cell on September 30 announced new prices for the next six months from October 1, wherein domestically produced gas prices were increased by a steep 40 per cent. In April 1, the same had been increased by a much higher 110 per cent, citing rising international prices.

Meanwhile, Mahanagar Gas Limited's share price surged over 3 per cent to Rs 827.65 and Rs 828 .1 per share on the BSE and NSE intraday after the company announced to increase the retail price of CNG and PNG.

The Petroleum and Natural Gas Ministry's petroleum pricing & analysis cell on Friday announced new prices for the next six months from October 1, wherein locally produced gas prices were increased by a steep 40 per cent.

According to Kotak Institutional Equities said APM gas prices are up nearly 5x in just a year - from USD 1.79 per mmBtu till September 2021 to USD 8.57. "We expect CGDs to raise prices, but only in tranches, impacting near-term earnings," it said.

"For USD 2.5 per mmBtu price rise, and also for recent currency weakness, CGDs will need an immediate CNG price increase of Rs 12-14 per kg," it said adding CGDs cannot absorb gas price increases.

Kotak said there is a serious need to revisit the domestic gas price formula and introduce floor/ceiling price for several reasons.

At around 12:20 PM, the stock was up over 2 per cent to Rs 821 per share on the BSE as compared to the over 2 per cent surge in the S&P BSE Sensex. MGL shares in the last one year have declined almost 24 per cent against over a 2 per cent fall in the benchmark index.