Mumbai: The Maharashtra state-run utility Mahanagar Gas on Tuesday announced yet another increase in the retail price of compressed natural gas (CNG) and piped natural gas (PNG) in the megapolis to the tune of Rs 4/kg and Rs 3/SCM (standard cubic metre) respectively. The hike in price will come into effect from midnight, reported news agency PTI.Also Read – Udaipur Killing: Jammu And Kashmir Man Held For Death Threats to Mumbai Girl Over Facebook Post
The distributor said the continuing rise in prices was due to the rising input gas cost and the fall in the value of rupee. The company has been sourcing gas from the overseas market to meet the shortfall in domestic gas allocation. Accordingly, MGL has increased the retail price of CNG by Rs 4/kg to Rs 80 and that of domestic PNG by Rs 3/SCM to Rs 48.50, in and around Mumbai. Also Read – Maharashtra Rain Alert: Heavy Rain Predicted For Several Districts, Orange Alert Issued For Mumbai
The Centre had increased the price of domestic and imported natural gas by over 110 per cent from April 1. This had completely offset the steep price reduction announced by the state by way slashing tax (VAT) on these fuels to 3.5 per cent from 13.5 per cent from April 1. Also Read – Mumbai: 5-Year-Old Playing With Umbrella Falls to Death From 11th Floor Window of Byculla Highrise
Despite liberalising the energy sector, the government still controls both price and supply of natural gas to a large extent. Prices and supply allocation are decided in advance twice a year.
(With inputs from PTI)
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