MGL increases CNG prices

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,

Autocar Pro News Desk By Autocar Pro News Desk calendar 03 Oct 2022 Views icon2632 Views Share - Share to Facebook Share to Twitter Share to LinkedIn Share to Whatsapp
MGL increases CNG prices

Days after the Centre announced that natural gas prices would be increased by 40 percent, Mahanagar Gas which supplies CNG to Mumbai and surrounding areas increased its retail price by Rs 6 per kilogram to Rs 86 beginning Tuesday. 

In a statement, the company 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 requirements.

It has led to an escalation in the input costs, thereby forcing the company to increase CNG's retail price. The devaluation of the rupee via-a-vis the US dollar has also added to its  problems, the company added before saying 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 last price hike came into effect in 12 July.

The APM gas price which is declared by the government is primarily given for social sectors such as mobility, power generation and fertilisers. 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.

 

Tags: MGL
RELATED ARTICLES
Exclusive: Petr Janeba to succeed Petr Solc as Skoda India's new brand director 

auther Autocar Pro News Desk calendar05 Dec 2023

Janeba will have a tough task of building volumes with a mass-market small SUV still about 15 months away but he is like...

JCB debuts hydrogen technology in India with eco-friendly backhoe loader

auther Autocar Pro News Desk calendar05 Dec 2023

Transport minister Nitin Gadkari unveils prototype JCB backhoe loader powered by a purpose-engineered hydrogen combustio...

Bridgestone India eyes 25% PCR aftermarket share by 2030

auther Autocar Pro News Desk calendar05 Dec 2023

The tyre maker, which currently has a 20 percent share of the passenger car radial (PCR) category in the aftermarket tyr...