Mahanagar Gas hikes CNG prices by ₹2/kg as LNG prices continue to soar

As prices of liquified natural gas (LNG) stay elevated owing to re-escalation of tensions in West Asia, city-gas distributor Mahanagar Gas Ltd (MGL) informed late Monday that it would hike prices of compressed natural gas (CNG) by ₹2 per kilogram across all their retail outlets, effective Sept 1.  

In addition to this, the city-gas distributor would also increase the rates for domestic piped natural gas (D-PNG) by ₹1 for every standard cubic metre (SCM).  

With the latest hike, price of CNG at MGL’s retail outlets have cumulatively increased by ₹6 per kg across three tranches, starting May 14.  

The hike mirrors that of peer Indraprastha Gas Ltd which increased prices of the vehicular gas by nearly ₹9 per kg across five tranches following their recent ₹3.89/kg hike August 29.  

In a statement, MGL explained the hike would seek to offset the increase in input gas price which has “significantly impacted the overall cost of gas supplied by the company”.  

“There is a significant demand in CNG, major portion of input gas for the CNG segment is being met through imported Spot RLNG. The above factors have resulted in a considerable increase in input gas cost for CNG segment,” it stated.