CNG gets costlier in Mumbai as price hikes by Rs 1.50, eighth increase in 11 months
PTC News Desk: After Pune, CNG prices have now increased in Mumbai and the Mumbai Metropolitan Region (MMR), adding to the fuel expenses of vehicle owners.
Mahanagar Gas Ltd (MGL) announced a hike of ₹1.50 per kg on Saturday, with the revised rates coming into effect from Sunday. Following the increase, CNG will now cost ₹91.50 per kg across the MMR and surrounding areas.
In January this year, CNG was priced at ₹80.50 per kg. With the latest revision, the total increase has reached ₹11 per kg, making the fuel nearly 14% more expensive in less than 11 months.
MGL has raised CNG prices eight times so far this year. The repeated hikes are likely to affect auto-rickshaw and taxi drivers, as well as private vehicle owners who depend on CNG, as their monthly fuel expenses will increase.
Why have CNG prices increased ?
According to MGL, the latest price hike was necessary due to rising gas procurement costs. The company cited several reasons, including the ongoing crisis in the Middle East, reduced allocation of domestic gas and greater dependence on expensive imported gas.
MGL also pointed out that the increasing use of imported re-gasified liquefied natural gas (RLNG), whose prices are linked to international markets, has raised the overall cost of procuring gas.
Strong demand for CNG has also contributed to the rising costs.
The company said the latest increase would help pass on part of the additional procurement expenses to consumers and ensure a stable and uninterrupted supply of CNG. MGL added that it is exploring ways to reduce costs so that the benefits can be passed on to customers while continuing to encourage the use of natural gas as a cleaner fuel.
- PTC NEWS
