The price for compressed natural gas (CNG) is expected to rise from Sunday. CNG will become more expensive by 2.50 rupees per kg (including tax), while the rate for cooking gas through pipelines will increase by 1.50 rupees per unit. “To close the gap in domestic gas allocation, MGL is procuring additional natural gas at market prices to meet the increasing needs of the CNG and domestic PNG segments. To partially offset the increase in gas input costs, MGL is forced to increase the delivery price for CNG by Rs. 2.50 / Kg and Domestic PNG of Rs.1.50 / SCM in and around Mumbai, “reads a statement from Mahanagar Gas Limited (MGL), a GAIL Limited company and the Maharashtra government.
After the last hike, CNG will now cost 66 rupees per kg and PNG will be available for 39.50 rupees per standard cubic meter (SCM). The CNG rate in the metropolitan area of Mumbai increased by over Rs 18 in the last year – from February 2021 to January 2022. This was the fifth increase in CNG prices in the past three months.
Compared to gasoline and diesel, CNG is considered to be one of the more environmentally friendly fuels. It’s also cheaper than other fossil fuels. Due to the low procurement costs, public transport such as auto rickshaws, taxis, and large commercial vehicles usually prefer CNG to gasoline and diesel. Many cars also switched to CNG after gasoline prices hit Rs 100 per liter last year. These vehicle owners will be severely affected by the series of CNG price increases in recent months.
The migration will also hit the households that use cooking gas. According to reports, the budgets of 16 lakhs living in the metropolis and surrounding areas, as well as eight lakh consumers who use gas vehicles, will skyrocket.
According to a report in the Hindustan Times, taxi associations have threatened to go on strike if the state government does not increase the fare for Kaali Peeli taxis. “Taxi drivers cannot drive at a loss. We have already suffered a lot in 2021 and the price of CNG and PNG is rising sharply. We have represented ourselves to the state government and if the government doesn’t raise the fare, we’ll go on strike, “AL Quadros, chairman of the Mumbai Taxi Men’s Union, told the Hindustan Times.
In September 2021, the central government raised the price of natural gas, which is used to generate electricity, make fertilizers, and CNG as fuel for cars and cooking gas for domestic kitchens, by 62 percent. This was the first increase in rates since April 2019. The Petroleum Planning and Analysis Cell (PPAC) of the Ministry of Oil announced that the rates for gas extracted from fields will be transferred to the state-owned Oil and Natural Gas Corporation (ONGC) and Oil India Ltd (OIL.)) Will be $ 2.90 per million UK thermal units for the six month period beginning April 1.
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