Mumbai consumers are starting September with higher costs for transportation fuel and household cooking gas.
This week, Mahanagar Gas Limited (MGL) announced an increase in the prices of Compressed Natural Gas (CNG) and domestic Piped Natural Gas (PNG) across the Mumbai Metropolitan Region.
With the new rates, CNG is ₹2 per kg more expensive, which leads to a price of ₹88 per kg.
The domestic PNG prices are also going up by ₹1 per standard cubic metre (SCM).
The new prices were implemented as of September 1, and will add to the monthly cost to motorists and households that depend on natural gas.
CNG Price Increased to ₹88 Per Kg
The CNG price revision is expected to have a direct impact on Mumbai’s large community of CNG vehicle users.
Auto-rickshaws, taxis, private cars and commercial vehicles that rely on CNG will now have to spend more on refuelling.
If people use their cars regularly, the ₹2 per kg increase in fuel costs could gradually compound. It could make a difference to commercial drivers who drive longer distances every day.
The recent rise also comes about after vehicle and taxi fares in the Mumbai Metropolitan Region have changed substantially, so it could put even more pressure on commuters.
PNG Rate Climbs to ₹53 Per SCM
MGL has also increased the price of domestic PNG by ₹1 per SCM. The revised rate of ₹53 per SCM will affect households that use piped natural gas for cooking.
The actual increase in a household's monthly bill will depend on its consumption. Families with higher PNG usage are likely to see a larger increase in their overall gas expenditure.
International Gas Costs Behind the Move
MGL has said the price rise was related to greater input gas costs. It has said it has been influenced by developments in the international energy market; the West Asia crisis has been a factor.
Another factor is the huge demand for CNG. A significant portion of the gas required for the CNG segment comes from imported spot regasified liquefied natural gas (RLNG).
As a result, changes in international gas prices can affect the cost of CNG in the domestic market.
Petrol and Diesel Prices Remain Unchanged
The latest revision should not be confused with petrol and diesel prices. Petrol and diesel have not received a fresh price increase on September 1.
The current change announced by MGL specifically concerns CNG and domestic PNG. Therefore, consumers using petrol- or diesel-powered vehicles will not see a new rate increase because of this particular MGL announcement.
What Mumbai Residents Should Expect
The latest gas price revision means CNG vehicle owners and PNG-using households will need to account for slightly higher energy expenses this month.
As international energy prices fluctuate with geopolitical conditions and supply conditions, fuel and gas prices are closely watched by consumers as well as businesses.
For now the key revised rates for Mumbai are clear: CNG is at ₹88 per kg and domestic PNG at ₹53 per SCM from September 1, while petrol and diesel prices remain unchanged.
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