CNG price rises by ₹1/kg in Mumbai, adding to autorickshaw, taxi costs

MUMBAI: Compressed natural gas (CNG) prices in Mumbai rose by ₹1 per kg on Thursday, taking the price to ₹89 per kg and adding to the operating costs of autorickshaw and taxi drivers already grappling with rising expenses

MUMBAI: Compressed natural gas (CNG) prices in Mumbai rose by ₹1 per kg on Thursday, taking the price to ₹89 per kg and adding to the operating costs of autorickshaw and taxi drivers already grappling with rising expenses.

Mahanagar Gas Ltd (MGL), which supplies CNG in Mumbai and neighbouring areas, attributed the increase to a sharp rise in the cost of imported regasified liquefied natural gas (RLNG), amid continuing volatility in global energy markets linked to the crisis in the Middle East.

In a statement, MGL said international developments had pushed up the prices of both domestically produced gas and imported RLNG, which are linked to international benchmarks. A significant portion of the gas used for CNG is sourced through imported RLNG, resulting in higher input costs for the company.

MGL said the ₹1-per-kg increase was being implemented to partially offset the rise in input costs and ensure continued supply of CNG.

The latest hike follows a ₹2-per-kg increase in July, when the Mumbai CNG price was raised from ₹86 to ₹88 per kg. With Thursday’s revision, the price has now reached ₹89 per kg.

MGL supplies CNG to more than 1.3 million vehicles through a network of over 500 stations across its operating areas. The company also supplies piped natural gas (PNG) to around 3.2 million households.

On Wednesday evening, senior members of the Petrol Dealers’ Association in Mumbai and CNG pump owners said they had received intimation from MGL about the price revision.

MGL operates across Mumbai, Thane, Raigad, Ratnagiri, Latur and Dharashiv, as well as Chitradurga and Davangere.