In a development that would affect 24 lakh consumers in the metropolis, the Mahanagar Gas Ltd (MGL) increased the prices of Compressed Natural Gas (CNG) and Piped Natural gas (PNG) with effect from midnight of Friday.

This is the third hike in CNG and PNG prices carried out by the MGL since October 14. The hike will hit the domestic budgets of 16 lakh people living in the metropolis and neighbouring areas, eight lakh consumers using gas-powered vehicles will have to spend more because of the hike.

The MGL has increased the basic prices of CNG by Rs 3.06/kg and domestic PNG by Rs 2.26 per Standard Cubic Meter (SCM) for the Mumbai Metropolitan Region (MMR).

As a consequence, the revised all-inclusive prices of CNG used by vehicles will go up from Rs 57.54 per kg to Rs  61.50 per kg, while the domestic PNG will be Rs 36.50 per SCM, in a single slab henceforth.

Earlier, the MGL had hiked rates twice in the first week of October ahead of the festive season. It went in for one more hike on October 14.

On its part,  the MGL has attributed the price increase to the shortfall in domestic gas allocation for which it is buying higher priced PNG (imported RLNG) to cater to the growing numbers of CNG and domestic customers.

“In addition, owing to the substantial increase in natural gas prices in the international market, the MGL’s input gas cost has also gone up. To partially offset the increase in the input costs of gas, we have gone in for the latest price hikes,” an MGL spokesperson said.

However, the MGL said that despite the revised rates, its CNG would help the consumers save around 62 percent and 35 per cent respectively in comparison with  petrol and diesel,  while the PNG users were able to save 27 percent compared with the prices of domestic LPG.