Mumbai CNG, PNG prices hiked

State-run utility Mahanagar Gas on Tuesday announced yet another increase in the retail price of compressed natural gas (CNG) and piped natural gas (PNG) in Mumbai by Rs 4/kg and Rs 3/SCM respectively, effective July 13.

The distributor attributed the continuing price increases to rising input gas cost and the fall in the rupee.

The company has been sourcing gas from the overseas market to meet the shortfall in domestic gas allocation.


Accordingly, MGL has increased the retail price of CNG by Rs 4/kg to Rs 80 and that of domestic PNG by Rs 3/SCM (standard cubic metre) to Rs 48.50, in and around Mumbai.

Despite liberalising the energy sector, the government still controls both price and supply of natural gas to a large extent. Prices and supply allocation are decided in advance twice a year.

The central government had increased the price of domestic and imported natural gas by over 110% from April 1. This had completely offset the steep price reduction announced by the state by way of slashing tax (VAT) on these fuels to 3.5% from 13.5% from April 1.

(With agency inputs)