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 icon3073 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
Tata Motors readies three new  car and SUV launches in 2024

auther Autocar Pro News Desk calendar19 May 2024

While the Nexon and Altroz engine line-ups are set to expand, there’s an all-new model to be launched too.

Honda’s 125cc bikes clock 3 million sales in eastern India, Bihar is top buyer

auther Autocar Pro News Desk calendar17 May 2024

Cumulative sales of the Shine 125 and SP125 record a new milestone; with 1.15 million units, Bihar accounts for 35 perce...

Kia India launches live video streaming of vehicles being serviced

auther Autocar Pro News Desk calendar10 May 2024

Available through the My Kia app, Kia Krystal offers access to all details, including explanations of work, costs, and r...