As the New Year approaches, Mahanagar Gas Limited (MGL) has delivered a shock to the people of Mumbai, Maharashtra. MGL has announced that the price of CNG will increase by ₹1 to ₹78/kg in the metropolitan city. However, there will be no hike in the price of piped gas for now. With this revised rate, CNG at the pumps will cost ₹78 per kg, while the price of piped gas will remain at ₹49 per unit in Mumbai. As the metropolitan city experiences a price hike in CNG, there are speculations that similar cities like Delhi, Chennai, Bengaluru, and Hyderabad may also see increases. But as of now, no such increases have been reported in any other cities.

With this hike, Mumbaikars are experiencing the third consecutive increase in prices in just over two months. Mahanagar Gas Ltd (MGL) has announced an additional increase of ₹1 per kg in CNG prices across the Mumbai Metropolitan Region this week. This follows a previous hike of ₹2 per kg on November 24.

This CNG hike will impact everything from home to travel. Rickshaw travel is also going to become more expensive.

A substantial number of public transport vehicles, such as autos, taxis, and buses across the region, depend on CNG for daily fuel. With the escalation of the CNG price hike, it has been reported that the auto union will demand a fare increase of a minimum of ₹3—from ₹23 to ₹26 in the MMR.

According to various reports, even after a cumulative hike of Rs 3 in November and December, MGL’s CNG offers a lucrative savings of around 49% and 14% over petrol and diesel.

Reason for the third consecutive CNG hike

As per report, the hike is due to additional market price and increased demand Passengers and traders will all be affected by this. This may lead to extra money to be paid in the new year and travel may also become expensive.

MGL and other city gas retailers, like Adani Total Gas Ltd, claim that they kept retail prices unchanged for September and October, despite a 20% increase in input costs. This claim was made during the CNG price hike of ₹2 per kg in November. Shortly after the assembly elections in Maharashtra concluded, MGL raised CNG prices by ₹2 per kg to ₹77 in Mumbai, effective from November 22.

MGL and IGL did not give reasons for the increase but sources said the hike was warranted because the firms now have to buy expensive gas following a two successive rounds of cut in supplies of regulated or APM gas.

Natural gas, extracted from the ground and seabed, is converted into CNG for powering automobiles. However, supplies from domestic ONGC fields, known as APM gas, have not kept up with the rising CNG demand.

Since mid-September, supply cuts have occurred twice, forcing city gas retailers to purchase more expensive non-APM gas or imported liquefied natural gas (LNG). The lack of a solution is the reason for the third consecutive increase in CNG prices in December.

However, Even after a cumulative hike of Rs 3 in November and December, MGL’s CNG offers a lucrative savings of around 49% and 14% over petrol and diesel.

The CNG rates in India are dependent on the prices of natural gas, which is available in abundance in some foreign countries, including Russia, the United States of America and OPEC (Organization of Petroleum Exporting Countries).
CNG rates vary from state to state, influenced by local taxes such as VAT, which differ across regions.

Check Today’s CNG Rates of Cities below

Noida: Rs 81.20 per KG
Delhi: Rs 75.09 per kg
Lucknow: Rs 93.96 per kg
Chennai: Rs 90.50 per kg
Bengaluru: Rs 86.85 per kg
Hyderabad: Rs 96 per kg