Mahanagar Gas Ltd (MGL) has just made it to the headlines after announcing a significant reduction in the price of Compressed Natural Gas (CNG) in Mumbai and its surrounding areas this morning, February 1.
The new price, inclusive of all taxes, is now set at 87 INR/kg, which represents a decrease of 2.50 INR/kg in the city.
It is pertinent to note that this is first price reduction ever since April 2022. Besides, four months ago, MGL had announced a price hike of 6 INR/kg due to a 40% raise in input cost by the government and a supply cut.
This reduction will bring much-needed relief to over 3 lakh private car owners and vehicles operating on CNG in the Mumbai Metropolitan Region (MMR). In addition, this will also bring relief for the auto and taxi drivers who have been hit hard by the recent increase in the price of natural gas. Over 5 lakh public transportation vehicles, including autos and taxis depend on CNG daily.
The reason behind this reduction in price is twofold. Firstly, the increased allocation of domestically produced natural gas has resulted in a decrease in MGL's input gas cost. Secondly, the government has recently experienced an oversupply of natural gas. This has allowed for the revised MRP of CNG to offer significant savings of around 44% compared to current petrol prices in Mumbai.
If reports are to be believed, the retail prices of CNG at the pumps have been slashed in anticipation of increased allocation of domestically produced natural gas. However, currently the price of natural gas will remain unchanged at 54 INR per unit for households with piped cooking gas connections. MGL, who supplies piped gas to close to 20 lakh households in Mumbai, Navi Mumbai, Mira Road, Bhayandar and its surrounding areas.
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