CNG price shoots up by Rs 6 to Rs 86 per kg; PNG up by Rs 4 to Rs 52.50

City gas utility Mahanagar Gas has increased the retail price of compressed natural gas CNG and piped natural gas PNG by Rs 6kg and by Rs 4 SCM respectively in and around the megapolis from Monday midnightAccordingly the revised retail price of CNG will be Rs 86kg and domestic PNG will be Rs 5250SCM MGL said in a statement on Monday eveningThe staterun company blamed the 40 per cent increase in input prices by the government from October 1 for the steep increase in the retail prices along with the supply cutThe oil ministrys petroleum pricing amp analysis cell on September 30 announced new prices for the next six months from October 1 wherein domestically produced gas prices were increased by a steep 40 per cent In April 1 the same had been increased by a much higher 110 per cent citing rising international pricesAlso Read Maharashtra government to consider invoking MCOCA in illegal liquor tradeThe government revises gas prices twice annually from April 1 to September 30 and from October 1 to March 31 So the price for October 1 to March 31 is based on the average price from July 2021 to June 2022MGL said apart from hiking prices the government had also reduced the allocation of gas to MGL by 10 per cent due to which MGL is required to source at a substantially higher cost from the market It also cited the fall in the rupee as another reason for the hikeWith the hike the price savings between CNG and petrol is down to 45 per cent now while that of PNG and LPG is down to just 11 per centOn September 30 the government hiked the prices of natural gas by 40 per cent to record levels citing soaring global pricesThe rate paid for gas produced from old fields which make up for about twothirds of all gas produced in the country was hiked to USD 857 per million British thermal units from the current USD 61 Simultaneously the price of gas from difficult and newer fields like the ones in Reliance Industries and its partner BPoperated deepsea D6 block in KG Basin was hiked to USD 126 per mmBtu from USD 992These are the highest rates for administeredregulated fields like ONGCs Bassein field off the Mumbai coast and freemarket areas such as the KG Basin Also this will be the third increase in rates since April 2019 and comes on the back of firming international prices Piped natural gas price in the last year has risen by over 70 per centThe price of gas from old fields which are predominantly of stateowned producers like ONGC and Oil India was more than doubled to USD 61 per mmBtu from April 1 Similarly the rates paid for gas from difficult fields such as deepsea KGD6 of Reliance went up to USD 992 per mmBtu from April 1 against USD 613 per mmBtuThis 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