Mahanagar Gas Limited recently announced a steep hike in the retail prices of compressed natural gas (CNG) by Rs 7 per kg to Rs 67 per kg and that of domestic piped natural gas (PNG) by Rs 5 per scm to Rs 41 per scm. As a result of the reduction in value added tax (VAT) on natural gas from 13.5 per cent to 3 per cent by the state government, the city gas utility has decided to pass on the entire benefit to end-consumers. Prior to this move, MGL had announced a reduction in the retail price of CNG by ₹6 per kg and piped gas by ₹3.50 per scm, even though the Centre had more than doubled the price of domestically produced natural gas earlier in the day.