Mahanagar Gas Limited (MGL) announced an increase in the prices of compressed natural gas (CNG) and household piped natural gas (PNG) in Mumbai and surrounding areas, effective July 9.
The price of domestic PNG will rise by INR 1 per standard cubic meter (SCM), while CNG will see an increase of INR 1.5 per kg. Both new rates are in effect from midnight on July 9. This means that now CNG will be sold at INR 75 per kg and PNG at INR 48 per SCM.
Mahanagar Gas cited the higher costs of importing natural gas as the reason for the hike. In a statement, the company said that because of a shortfall in domestic gas, it is sourcing additional natural gas from the market to meet the growing demand for CNG and domestic PNG. This gas is more expensive, which has led to the higher gas cost.
The natural gas company further highlighted that despite the hike, its CNG still offers savings compared to petrol and diesel. The company claimed that CNG provides about 50 percent savings over petrol and 17 per cent over diesel at current prices in Mumbai.
On July 8, Mahanagar Gas shares closed 1.36 per cent lower at INR 1,675.60, down from INR 1,698.70 the previous day. Currently, the shares are running at INR 1664 in NSE as of 12:30 p.m. on July 9.
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