Tuesday, February 20, 2024
HomeNewsMGL hikes gas prices again effective from midnight ; CNG at ₹89.50

MGL hikes gas prices again effective from midnight ; CNG at ₹89.50

[ad_1]

State-owned utility Mahanagar Gas on Friday announced yet another increase in retail prices of piped natural gas (PNG) and compressed natural gas (CNG) prices, citing rising input costs and short supply of gas.

MGL has said it is revising upwards the retail price of CNG (compressed natural gas) by 3.50/kg to 89.50 and that of domestic piped natural gas (PNG) by 1.50 per SCM to 54 effective this midnight.

The last increase was effected in August when the Mahanagar Gas hiked the retail price of CNG by 6 per kilogram and PNG by 4/scm.

This is the second revision since October when the Centre had increased the price of domestically produced gas, supplied with an administered price mechanism (APM), by 40 per cent for the second half of the fiscal, which came atop a 110 per cent spike in April for the first half.

On April 1, CNG was priced at 60/kg and piped cooking gas was at 36/SCM. The prices were so low after the state government had slashed the VAT on these fuels from 13.5 per cent to 3.50 per cent, leading to MGL cutting CNG price by 6/kg and PNG by 3.50.

To offset the price increase along with the fall in the rupee,

On shortage in the supply of APM gas, MGL said the supply has been cut by 10 per cent, forcing it to source the fuels from outside at a substantially higher cost as the demand for gas has not come down yet.

MGL claimed that even at the revised level CNG is about 42 per cent cheaper than petrol in the megapolis, while PNG is cheaper by around 8 per cent compared to current LPG.

Catch all the Business News, Market News, Breaking News Events and Latest News Updates on Live Mint.
Download The Mint News App to get Daily Market Updates.

More
Less

[ad_2]

Source link

RELATED ARTICLES

most popular

Recent Comments