Mahanagar Gas Ltd (MGL), India's leading natural gas distributor on Friday revised the CNG prices in and around Mumbai by Rs. 1 per kg. Customers will now have to shell out Rs. 48.95 for a kg of CNG across the city. The gas distributor cited lower sales volumes because of COVID-19 and higher cost due to the depreciation of rupees against the dollar as the main reasons for the CNG price hike.
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CNG now costs Rs. 48.95 per kg in and around Mumbai city
Mahanagar Gas said in a statement that, "To partially recover fixed costs in the face of lower sales due to the pandemic, and higher landing cost of gas due to the depreciation of the rupee against the dollar, we are constrained to increase CNG prices by Rs 1 effective today."
With new prices coming into effect, MGL said that compressed natural gas offers attractive savings of around 60 per cent and 30 per cent as compared to petrol and diesel respectively, considering the current fuel prices in Mumbai. To recall, MGL lowered the prices of CNG by Rs. 2 per kg in April as the Indian government had slashed the rate of domestically produced natural gas due to nationwide lockdown.
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MGL reduced CNG prices by Rs. 2 per kg in April because of lockdown
However, the state-run city gas distributor has spared the domestic users of PNG by not hiking the prices this time around. But, it had also reduced the prices of PNG in April because of the lockdown. Mahanagar Gas shares on Friday remained flat at Rs. 1,027.55 apiece on the BSE even as Sensex fell 0.03 per cent to end the day at 38,128.90 points.
