Mahanagar Gas raises CNG price by Rs 2/kg, PNG by Rs 1/SCM amid Middle East tensions

Mahanagar Gas Ltd (MGL) on Monday announced an increase of Rs 2 per kg in the price of compressed natural gas (CNG) and Rs 1 per standard cubic metre (SCM) in domestic piped natural gas (PNG), citing higher input costs amid tensions in the Middle East.

The revised CNG price will be Rs 88 per kg in and around Mumbai, effective from midnight on September 1, the company said in a statement.

MGL said the ongoing crisis in the Middle East has pushed up the price of natural gas linked to international benchmarks, increasing its input costs.

The company said demand for CNG remains strong, while a significant portion of the gas supplied to the CNG segment is sourced through imported spot regasified liquefied natural gas (RLNG), which is currently available at higher prices.

MGL said the CNG price increase would only partly cover the rise in input costs and help maintain a steady supply to customers.

Around 13 lakh CNG vehicles across Mumbai, Thane, Raigad, Ratnagiri, Latur and Dharashiv in Maharashtra, as well as Chitradurga and Davangere in Karnataka, 

depend on MGL's supply network.

The company also raised the price of domestic PNG by Rs 1 per SCM, citing the same increase in input costs. The hike will affect around 30 lakh domestic consumers, MGL said.

The announcement comes days after Indraprastha Gas Ltd, which supplies CNG in the Delhi-NCR region, raised its CNG price by Rs 3.89 per kg to Rs 86.98 per kg, also citing higher input costs.  (with inputs from PTI)