Mumbai:
State-run gas distributor Mahanagar Gas Limited (MGL) on Saturday hiked the prices of the domestic piped natural gas (PNG) by 50 paise per unit and the compressed natural gas (CNG) by Rs 2 per kg across the Mumbai Metropolitan Region (MMR).
The PNG across Mumbai, Thane, Navi Mumbai and other parts of the MMR will now cost Rs 52 per unit, while the CNG is priced at Rs 86 per kg.
“Due to a significant increase in gas procurement costs caused by reduced allocation of domestic gas, increased dependence on higher-cost gas sources, and depreciation of the Indian Rupee, the overall cost of gas has risen considerably,” the MGL said in a statement.
“The company continues to explore avenues to optimise costs and pass on benefits to consumers, ensuring the widespread adoption of natural gas as a cleaner fuel alternative,” the MGL, which serves in Mumbai, Thane, Navi Mumbai, Kalyan, and nearby cities, said.
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The CNG prices in Mumbai were last revised on May 14, when the rates were hiked by Rs 2 per kg.
The hike raises running costs for private vehicle owners, taxis and public transport fleets that rely on CNG, though the fuel continues to remain cheaper than petrol and diesel on a per-kilometre basis.
Petrol prices were raised by Rs 2.61 a litre and diesel by Rs 2.71 on Monday, the fourth increase in less than two weeks that extended a delayed pass-through of soaring global crude oil costs triggered by the US-Iran war. The petrol in Mumbai currently costs Rs 111.21 per litre and diesel Rs 97.83.
The fuel price increases come amid broader efforts by the Centre to contain India’s oil import bill and reduce fuel consumption amid the war in the Middle East, which broke out on February 28 when the US and Israel conducted joint attacks on Iran. Tehran, in response, attacked Israel and American bases in the Middle East.
The US-Iran war has led to volatility in energy prices as shipping flows through the Strait of Hormuz, a conduit for about 20% of global oil and LNG supplies, remain disrupted.
Prime Minister Narendra Modi this month urged citizens and government departments to conserve fuel, encourage remote working and reduce non-essential travel as elevated energy prices pressure foreign exchange reserves and threaten to widen the current account deficit.
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