CNG price in Mumbai: After several hikes in CNG prices in Mumbai, the price of compressed natural gas has been reduced by Rs 2.50 per kg. Now the CNG will cost Rs 87 a kg in the city. The new rate is effective from Wednesday (February 1).
However, the city gas utility Mahanagar Gas Ltd (MGL), left the price of cooking gas PNG unchanged. It is worth noting that since April 6, the price of CNG had gone up by Rs 29.50 per kilogram. After this reduction, the retail price of the fuel will come down to Rs 87 per kg in and around Mumbai, MGL said in a statement.
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While the piped natural gas (PNG) for residential use increased by Rs 18.50 at Rs 54. CNG’s price on November 4 last year peaked at Rs 89.50 per kilogram and that of PNG at Rs 54 a kg.
The state-owned company said the marginal cut in prices is in anticipation of the increased allocation of domestically-produced natural gas from high pressure-high temperature areas to distribution entities by the oil ministry, which lowers its input gas cost.
This is the first price reduction since the second week of April 2022 when it had announced a price reduction following the massive cut in VAT on fuel by the state government from 13.5 per cent to just 3 percent.
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But on the same day, the Centre more than doubled the prices at source, leading to a massive increase by the utility from the second week of April. Since then it has been jacking up prices regularly.
On April 1, 2022, the price of CNG was reduced by Rs 6/kg to Rs 60 per kg, and PNG by Rs 3.50 to 36 per scm (standard cubic metre), following the reduction in Value Added Tax.
(With inputs from PTI)
