Mahanagar Gas Limited (MGL), a state-owned natural gas distribution company, announced a price hike for Compressed Natural Gas (CNG) and domestic Piped Natural Gas (PNG) in Mumbai and surrounding areas. The increase, effective July 9th, 2024, aims to offset rising input costs.
- CNG price increase: Rs 1.5 per Kg (New price: Rs 75.00/Kg)
- Domestic PNG price increase: Rs 1 per Standard Cubic Meter (SCM) (New Price: Rs 48/SCM)
MGL cited a shortfall in domestic gas allocation and the need to import additional market-priced natural gas (liquefied natural gas) to meet the growing demand for CNG and PNG. This imported LNG comes at a higher cost, necessitating the price adjustment.
Despite the hike, MGL assures consumers that CNG remains a cost-effective fuel option compared to petrol and diesel. At current prices in Mumbai, CNG offers savings of around 50% and 17% respectively. MGL highlights the continued convenience, safety, reliability, and environmental benefits of domestic PNG.
The company claims that even after the increase, their CNG and PNG prices remain among the lowest in the country.
Natural Gas Shortage
India faces a natural gas shortage as domestic production from Oil and Natural Gas Corporation (ONGC) fields struggles to keep pace with rising demand. ONGC supplies meet roughly 66-67% of CNG demand, with the remaining requirement fulfilled by imported LNG.
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