Following the natural gas price revision, the prices of compressed natural gas (CNG) and piped natural gas (PNG) have increased. The city gas utility Mahanagar Gas Limited (MGL) has increased the retail price CNG and PNG by Rs 6 per kg and by Rs 4 per scm, respectively with effect from October 3, 2022. Accordingly, the revised retail price of CNG will be Rs 86 per kg and domestic PNG will be Rs 52.50 per scm. This is on account of the 40 per cent increase in input prices by the government from October 1, 2022 for the steep increase in the retail prices along with the supply cut.
Apart from hiking prices, the government had also reduced the allocation of gas to MGL by 10 per cent due to which MGL is required to source at a substantially higher cost from the market. It also cited the fall in the rupee as another reason for the hike.