According to the latest reports, the prices of Compressed Natural Gas (CNG) and domestic Piped Natural Gas (PNG) rose in Mumbai from midnight on August 2. This is the fifth time that there has been a rise in the prices of CNG and PNG in the city.
Based on accounts, CNG is now being sold at INR 86 per kg which is a rise of INR 6. Similarly, domestic PNG is now being sold for INR 52.50 per Standard Cubic Metre (SCM) which is a rise of INR 4. The last increase was on July 12.
A statement from Mahanagar Gas Limited (MGL) reportedly elaborated on how because the rise in input cost is considerably high, the MGL has undertaken the decision to recover such rise in gas costs. In accordance with this, the MGL is compelled to increase the MRP of CNG by INR 6 per kg and domestic PNG by INR 4 per SCM in and around Mumbai from midnight of August 2.
Narratives suggest that in the aftermath of this hike, the auto-rickshaw and taxi unions expressed their shock. They are anticipated to approach the state government for prompt relief. The prominent challenges for the Indian gas industry include the current spiralling global prices of natural gas in the midst of a rise in demand from Europe in addition to fewer supplies from Russia.
It has been reported that previously for MGL and Indraprastha Gas Ltd that attain higher contributions from the sale of CNG, a rise in price could impact their volume growth while volatility in blended gas prices means uncertainty on the front of margin.
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