Mahanagar Gas Ltd. has hiked CNG and domestic PNG prices in Mumbai in the backdrop of escalation in the West Asia conflict, according to an official statement by the company on Tuesday.
"In view of the ongoing crisis in the Middle East, which has resulted in a significant increase in input gas prices linked to international indices, MGL has announced a revision in the prices of CNG," MGL said in the press release
Consequently, MGL has increased CNG price by Rs 2/kg to Rs 88 in Mumbai, while domestic PNG price rises by Rs 1/SCM effective from today onwards (Sept. 1).
The company further said that there is a significant demand in CNG and major portion of input gas for the CNG segment is being met through imported Spot RLNG.
"The above factors have resulted in a considerable increase in input gas cost for CNG segment. MGL now has to source gas at higher spot RLNG to meet the increased CNG demand," it outlined, adding that the rise in input gas prices has significantly impacted the overall cost of gas supplied by the company.
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