Mumbai : Mahanagar Gas Limited (MGL) has again increased the prices of CNG and PNG 5/kg and 4.50, effective Tuesday midnight. The city gas utility cited steep rise in input prices for the hike.
MGL had earlier increased the prices on 6 April auto fuel cng and by LPG PNG 7 more 5, respectively.
MGL had reduced retail prices on March 31 CNG By 6/Kg and for PNG After 3.50, the state government reduced VAT on these fuels from 13.5 per cent to 3% with effect from April 1.
The company announced today 5/kg hike in auto CNG 72/Kg and by 4.50/SCM to Domestic Piped Natural Gas 45.50/SCM in and around Mumbai.
It said that with effect from April 1 the Center has increased the supply price of domestically produced natural by 110 per cent.
In addition, the cost of re-gasified LNG, which is being compounded to meet the shortfall in domestic gas availability. CNG And the domestic PNG segment is at a historically high level. This combination has resulted in a significant increase in the cost of gas being procured by MGL.
It said the revised price of CNG is 59 per cent cheaper than petrol, 31 per cent cheaper than diesel, while domestic PNG is about 19 per cent cheaper than LPG.
On March 31, the utility had announced a drastic reduction in the retail price of CNG 6/kg and by piped gas 3.50/scm, with effect from April 1, the state had reduced VAT on natural gas from 13.5% to 3%.
But the announcement came on the same day that the Center hiked prices for domestically produced natural gas by 110 per cent for the next six months starting April 1 to producers, citing a hike in global energy rates.
The supply price of gas from regulated fields of state-owned ONGC and Oil India increased from US$ 2.90 to US$ 6.10 per million British thermal unit (mmbtu), and the rate for difficult areas such as deep water to US$ 9.92 per mmbtu. Will go April-September from USD 6.13 per mmBtu.