The prices of auto fuel CNG and cooking gas PNG have been hiked again in Mumbai in the wake of massive rise in input costs.
The Mahanagar Gas Limited (MGL) increased CNG price by Rs 5/kg to Rs 72 from Rs 67/kg and PNG rate by Rs 4.50/scm to Rs 45.50 from Rs 41.50/scm, effective Tuesday night (April 12, 2022).
MGL had earlier on April 6 hiked the retail price of CNG and PNG by Rs 7 and Rs 5, respectively. The state-run natural gas distribution company had on March 31 slashed the retail prices of CNG by Rs 6/kg and for PNG by Rs 3.50 following the state government's announcement to cut VAT (value added tax) on these fuels to 3 per cent from 13.5 per cent, effective April 1.
It said from April 1, the Centre has increased the supply price of domestically-produced natural by 110 per cent.
Further, the cost of re-gasified LNG, which is being blended to offset the shortfall in the availability of domestic gas for CNG and domestic PNG segments, is at historically high levels. 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 cheaper by 59 per cent over petrol which is 31 per cent cheaper than diesel, while domestic PNG is around 19 per cent cheaper than LPG, it added.
On March 31, the utility had announced a steep reduction in the retail price of CNG by Rs 6/kg and piped gas by Rs 3.50/SCM, from April 1 after the state had lowered VAT on natural gas from 13.5 per cent to 3 per cent.
But that announcement came on the same day when the Centre jacked-up producers' price by a whopping 110 per cent for the next six months beginning April 1 for domestically produced natural gas citing a spike in global energy rates.
The supply price of gas from regulated fields of state-owned ONGC and Oil India rose to a record $6.10 per million British thermal units (mmBtu) from $2.90, and the rate for difficult fields like deepwater will rise to $9.92 per mmBtu for April-September from $6.13 per mmBtu.
(With inputs from PTI.)
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