MGL slashes CNG price by Rs 8, PNG by Rs 5 in Mumbai

Gail India subsidiary Mahanagar Gas MGL on Friday announced a steep reduction in the retail price of compressed natural gas CNG by Rs 8kg and domestic PNG piped natural gas by Rs 5SCM across its licenced areaThe move comes on the heels of the Centre revising the pricing methodology of domesticallyproduced natural gas on Thursday as proposed by the Kirit Parikh committee and following it with the new price announcement earlier in the dayIn February the city gas distributor reduced its CNG price by Rs 25kg but prices are still around 80 per cent more than those in April lastMGL is pleased to pass the benefit of the source price reduction in domestic gas cost onto its domestic PNG and CNG consumers Accordingly the price of CNG is reduced by Rs 8kg and domestic PNG is down by Rs 5SCM in and around Mumbai a late evening statement from the city gas distributor saidThe revised retail price of CNG will be Rs 79kg and that of domestic PNG Rs 49SCM effective from April 7 midnightThe company said with this CNG is 49 per cent cheaper than petrol and 16 per cent than diesel at current prices in Mumbai while domestic PNG is 21 per cent cheaper than domestic LPGEarlier in day the Centre set domestically produced gas price for April USD65 mmBtu for ONGC and Oil India and at USD792 for othersAlso Read Maharashtra Man beaten to death in Nagpur two heldIn an order from petroleum planning and analysis cell the price of natural gas for April 830 comes to USD 792 mmBtu million British thermal unit going by the new indexation of pricing it at 10 percent of imported cost of crude oil However the Cabinet while changing the pricing formula capped the rates at USD 65 mmBtuFor the gas produced by ONGC and OIL from their nomination fields the price shall be subject to ceiling of USD 65mmBtu the order saidOn Thursday the Cabinet revised the gas pricing formula as proposed by the Kirit Parikh panel and capped the price of domestically produced CNG and piped cooking gas which meet almost 70 per cent of supply at 10 per cent of international crude pricesThe new formula will be applicable on natural gas produced from legacy or old fields known as APM administered price mechanism gas which will be indexed to the price of imported crude instead of benchmarking it to gas prices in four surplus nations of Oman the US Canada and RussiaAccordingly APM gas will be priced at 10 per cent of the price of the India crude basket but the rate will be capped at USD 65mmBtu There will also be a floor or base price of USD 4mmBtuThe new ceiling price is lower than the current rate of USD 857mmBtu and will translate into a reduction in prices of piped cooking gas as well as CNG sold to automobiles by 10 percent Piped cooking gas prices will be cut by up to 10 percent across cities while CNG will see a little lower reduction the government saidThis story has been sourced from a third party syndicated feed agencies Midday accepts no responsibility or liability for its dependability trustworthiness reliability and data of the text Midday managementmiddaycom reserves the sole right to alter delete or remove without notice the content in its absolute discretion for any reason whatsoever