MGL Raises CNG Prices by Rs 2/kg Amid West Asia Crisis

Mahanager Gas Limited (MGL) raised Compressed Natural Gas (CNG) prices by Rs 2 per kg and domestic Piped Natural Gas (PNG) rates by Rs 1 per standard cubic metre in Mumbai from September 1.

The revised CNG price in and around Mumbai now stands at Rs 88 per kg, affecting around 13 lakh CNG vehicles across the region. MGL attributed the increase to a sharp rise in input gas costs amid the ongoing crisis in the Middle East, which has pushed up international gas prices linked to international indices.

The company said demand for CNG has increased significantly, while a major portion of the gas required for its CNG segment is being sourced through imported spot Regasified Liquefied Natural Gas (RLNG). The increase in international gas prices has forced MGL to source RLNG at higher prices to meet growing CNG demand.

The Rs 2 per kg increase will only partially offset the higher input costs, according to MGL. The company added that the revision is necessary to help maintain a steady and sustained supply of CNG to its customers.