- Mahanagar Gas Ltd increased CNG price by Rs 2/kg to Rs 88 in Mumbai from Sept 1
- Domestic PNG price raised by Rs 1/SCM due to rise in input gas costs from Sept 1
- Price hike attributed to West Asia conflict causing surge in international gas prices
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.
ALSO READ: Oil Prices Continue Rally; Brent Crude At $91 As US-Iran Escalation Revives Hormuz Supply Fears
Similarly, Indraprastha Gas Ltd. had increased compressed natural gas prices across Delhi-NCR on Monday. IGL raised CNG prices by Rs 3.89 per kg from Aug. 29.
The revision took the retail CNG price in Delhi to Rs 86.98 per kg from Rs 83.09 earlier. The move came as the company faces elevated spot LNG prices amid renewed disruptions linked to the West Asia crisis.
IGL said the latest increase was required to partially offset the rise in input gas costs while maintaining reliable CNG supplies. The company has also highlighted stronger CNG consumption in line with India's economic activity, which has increased the requirement for imported spot LNG.
Essential Business Intelligence, Sharp Market Insights, Practical Personal Finance Advice, Daily Fuel, Gold and Silver Prices and Latest Stories — On NDTV Profit.