Tezzbuzz Desk– CNG prices have increased once again in Mumbai and surrounding areas. On Sunday, November 15, the price of Compressed Natural Gas (CNG) was increased by Rs 1.50 per kg. This is the eighth price increase of Mahanagar Gas Limited (MGL) this year. After this, the retail price of CNG in Mumbai has increased to Rs 91.50 per kg.
Since January till now, the price of CNG has increased by a total of Rs 11 per kg. In January, the price of CNG was Rs 80.50 per kg. That means prices have increased by about 14 percent in less than 11 months. This will have a direct impact on the fuel expenses of auto-rickshaw and taxi drivers as well as private vehicle owners.
New rates came into effect from midnight
The new rates have been implemented from midnight on 14th November. Earlier on November 1, the price of CNG was increased by Re 1 per kg. Since the beginning of September, the price of CNG has increased by Rs 5.50 per kg.
This increase will affect about 12.93 lakh vehicles running on CNG in the Mumbai Metropolitan Region (MMR). These include auto-rickshaws, taxis, private cars and public transport vehicles.
Rising cost of gas purchase became the reason
In a statement issued on Saturday, MGL cited rising cost of gas procurement, less allocation of domestically produced natural gas and increasing dependence on imported Regasified Liquefied Natural Gas (RLNG) as the reasons behind the price increase.
According to the company, the cost of gas purchase has increased due to the ongoing crisis in the Middle East. The overall input cost has also increased due to strong demand and increasing share of imported gas. As prices of imported RLNG are linked to international benchmarks, fluctuations in the global energy market have a direct impact on the company's procurement cost.