CNG price reduced by ₹3/kg in Mumbai, PNG cut by ₹2/scm | Check rates

Mahanagar Gas Ltd (MGL) reduces prices of CNG and PNG in Mumbai and adjoining areas. CNG price reduced by ₹3/kg, PNG by ₹2/scm.

Published on: Oct 2, 2023, 11:00:19 IST

By HT News Desk

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Mahanagar Gas Ltd (MGL) announced a reduction in the prices of Compressed Natural Gas (CNG) and Piped Natural Gas (PNG) in Mumbai and adjoining municipalities on Monday. The price of CNG has been lowered by ₹3 per kilogram, while the price of PNG has been reduced by ₹2 per standard cubic meter (scm).

MNGL has reduced the retail price of CNG and PNG. (HT PHOTO)

MGL statement read: "MGL is pleased to announce a reduction in the CNG price by ₹3 per kilogram and Domestic PNG (DPNG) by ₹2 per SCM in and around Mumbai."

What are the new rates for CNG and PNG in Mumbai?

Effective from today, the revised MRP for CNG will be ₹76.00 per kilogram, and for Domestic PNG, it will be ₹47.00 per SCM.

What led to the reduction in the prices of CNG and PNG?

MGL said it is welcomed the reduction in the price of domestically produced High-Pressure High-Temperature (HPHT) Natural Gas by the Centre.

For the six-month period commencing on October 1, the price of gas from deep-sea and high-pressure, high-temperature (HPTP) areas has been reduced to USD 9.96 per million British thermal unit (mmBtu) from USD 12.12, as reported by the oil ministry's Petroleum Planning and Analysis Cell (PPAC).

The government bi-annually sets prices for locally-produced natural gas, which is used for various purposes, including conversion into CNG for automobiles, piped supply to household kitchens for cooking, electricity generation, and fertilizer production.

Rates are revised on April 1 and October 1 each year, particularly for newer fields situated in challenging-to-access areas like deep-sea locations.

Russia-Ukraine war led to rise in the prices of natural gas

Due to the global increase in energy prices following Russia's invasion of Ukraine, the rates for locally-produced gas reached record levels, with gas from legacy or old fields priced at USD 8.57 per mmBtu and gas from difficult fields at USD 12.46 per mmBtu between October 2022 and March 2023.

The price for gas from difficult fields was subsequently reduced to USD 12.12 per mmBtu for the six-month period starting April 1.

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HT News Desk
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