Mahanagar Gas Limited (MGL) has announced another hike in the retail price of CNG and PNG by Rs 5/kg and Rs 4.50, respectively, beginning Tuesday midnight, citing a sharp rise in input prices, reported CNBCTV18. It had raised the retail prices of auto fuel CNG and cooking gas PNG by Rs 7 and Rs 5, respectively, earlier.

Also Read| CNG-PNG price hike: Natural gas rate rises in Delhi, Maharashtra and Gujarat

In and around Mumbai, the company announced a Rs 5/kg increase in auto CNG to Rs 72/kg and a Rs 4.50/SCM increase in domestic piped natural gas to Rs 45.50/SCM on Tuesday. 

Also Read| Fuel price today: Petrol and Diesel rates remain unchanged on April 13, 2022

According to the statement, the Centre has increased the supply price of domestically produced natural gas by 110% as of April 1. Furthermore, the cost of re-gasified LNG, which is being mixed to make up for a shortage of domestic gas in the CNG and domestic PNG segments, is at an all-time high. 

Also Read| Trending Stocks: CIL, Infosys, Tata Steel, Hathway and others in news today

MGL’s gas procurement costs have risen significantly as a result of this combination. CNG is now 59% cheaper than petrol, 31% cheaper than diesel, while domestic PNG is roughly 19% cheaper than LPG, according to the company.

Also Read| Trade Setup: Top 15 things to know before market opens on April 13, 2022

After the state reduced VAT on natural gas from 13.5% to 3% on March 31, the utility announced a sharp reduction in the retail price of CNG by Rs 6/kg and piped gas by Rs 3.50/SCM, effective April 1. However, on the same day, the Centre raised producers’ rates for domestically produced natural gas by a whopping 110% for the next six months, commencing April 1, citing a jump in global energy rates.