Gas price spikes by 40%, to impact CNG vehicle owners

These are the highest prices for fields that are governed by regulations.

By Shahkar Abidi calendar 02 Oct 2022 Views icon4521 Views Share - Share to Facebook Share to Twitter Share to LinkedIn Share to Whatsapp
Gas price spikes by 40%, to impact CNG vehicle owners

Within days of the Centre announcing the price increased of natural gas prices by 40 percent, Mahanagar Gas which supplies CNG to Mumbai and surrounding areas said it has increased its retail price by Rs 6 per kilogram. This means customers will now have to pay Rs 86 per Kg for it. 

Mahanagar Gas in a statement said that in addition to the spike in natural gas price, the allocation of administrative price mechanism (APM) gas to it has been concurrently reduced by 10 percent, prompting it to source gas at a substantially higher cost in order to cater to the increasing requirement. It has led to escalation in the input costs, thereby forcing the company to increase CNG's retail price. The devaluation of Indian currency against the US dollar has also added to their problems, the company added before continuing that despite the price increase, CNG still remains attractive as automotive fuel offering 45 percent savings when compared to petrol at current price level in Mumbai which stands at Rs 106.31 per litre. 

The APM gas price which is declared by the Government is primarily given for social sectors such as mobility, power generation and fertilizers. It is relatively cheaper than non-APM gas price which is for the free markets. 

Local taxi and autorickshaw fares have also been increased as a result.

RELATED ARTICLES
KPIT transfers pathbreaking sodium ion battery tech to Trentar Energy for commercialisation

auther Autocar India calendar12 Feb 2025

KPIT’s sodium-ion battery technology, which uses earth-abundant raw materials and has promising application in e-mobilit...

Denso looks to double India revenues by 2030

auther Autocar India calendar11 Feb 2025

The Japanese Tier-1 major is betting big on upcoming products in ADAS and electrification to accelerate its growth in th...

Readywire's new ERP tools can boost operational efficiency at auto dealerships

auther Autocar Pro News Desk calendar30 Jan 2025

With its IT solutions aimed at overhauling the back- and front-end operations of automotive dealerships with a digital b...