Mumbai:
Following Pune, CNG has now become more expensive in Mumbai and the Mumbai Metropolitan Region (MMR). CNG vehicles in these areas will now be costlier.
On Saturday, Mahanagar Gas Ltd (MGL) raised CNG prices by Rs 1.50 per kg. The new rates will come into effect from today. With this increase, CNG will be priced at Rs 91.50 per kg in the MMR and surrounding areas.
In January this year, the price of CNG was Rs 80.50 per kg. Following this latest hike, the total increase has reached Rs 11 per kg - meaning CNG has become approximately 14 per cent more expensive in less than 11 months.
So far this year, MGL has increased CNG prices eight times. Starting at Rs 80.50 per kg in January, the price has now reached Rs 91.50.
This will directly impact autorickshaw and taxi drivers, as well as individuals who use CNG-powered private cars, as their monthly fuel expenses are set to rise.
According to MGL, the price hike was necessitated by an increase in the cost of procuring gas. The company cited several factors for the rising costs: the ongoing crisis in the Middle East, a reduction in domestic gas allocation and an increased reliance on expensive imported gas.
The company noted that the rising share of imported re-gasified liquefied natural gas (RLNG), the price of which is linked to international markets, has put pressure on the procurement cost of CNG. Strong demand for CNG is also a contributing factor. MGL stated that the latest price hike will allow a portion of the rising gas costs to be passed on to customers. This will help ensure a consistent and stable supply of CNG.
The company added that it is also exploring options to reduce costs, with the aim of passing the benefits on to customers and continuing to promote the use of natural gas as a clean fuel.
