Compressed Natural Gas (CNG) and Domestic Piped Natural Gas (DPNG) will get costlier in the Mumbai Metropolitan Region (MR) from today, September 1, after Mahanagar Gas Limited (MGL) announced a price hike.

Citing rising input costs, MGL has hiked the CNG prices by Rs 2 per kg and domestic DPNG by Re 1 per standard cubic metre (SCM), effective today.

The revised rates stand at Rs 88 per kg for CNG and Rs 53 per SCM for DPNG.

Story continues below this ad

According to MGL, the price increase was necessitated by the ongoing West Asia crisis, which has directly escalated input gas prices linked to international indices.

According to the company, a larger portion of the rising demand for CNG was met through spot regasified liquefied natural gas (RLNG), the price of which has also increased. Consequently, MGL has had to source RLNG at higher costs, pushing up its overall input expenses.

MGL said the latest revision would partially offset the higher cost of input gas and help ensure continued and sustained supply of natural gas to its customers. The hike will affect nearly 12.93 lakh vehicles across the MMR, including auto rickshaws, taxis, private vehicles and those operated by transport authorities, that run on MGL-supplied CNG.

In May, MGL had increased the CNG price to Rs 86 per kg and PNG to Rs 52 per SCM, citing higher gas procurement costs due to reduced allocation of domestic gas and depreciation of the Indian rupee against the US dollar.

Story continues below this ad

Meanwhile, MGL said it would continue to explore ways to optimise gas procurement and promote wider adoption of PNG as an environment-friendly alternative.