CNG Prices Rise By Rs 2 In Mumbai Amid Middle East Crisis

Middle East Crisis Impact On Gas Prices In Mumbai: The Mahanagar Gas Limited (MGL) has raised the price of Compressed Natural Gas (CNG) by Rs 2 per kg and domestic piped natural gas (PNG) by Re 1 per standard cubic metre (SCM).

The revised CNG price in and around Mumbai will be Rs 88 per kg. The new rates will take effect from midnight on September 1, the company said in a statement.

MGL said the Middle East crisis has pushed up the price of natural gas linked to international benchmarks. "In view of the ongoing crisis in the Middle East, which has resulted in a significant increase in input gas prices linked to international indices, MGL has announced a revision in the prices of CNG," the company said.

The company pointed to strong demand for CNG as another factor behind the price revision. A substantial share of the gas supplied to the CNG segment comes from imported spot regasified liquefied natural gas (RLNG), which has become more expensive.

MGL said the Rs 2 increase in CNG prices will only partly cover the rise in input costs. The move, it added, is aimed at ensuring a steady supply of CNG to customers.

Notably, around 13 lakh CNG vehicles across Mumbai, Thane, Raigad, Ratnagiri, Latur and Dharashiv in Maharashtra, as well as Chitradurga and Davangere in Karnataka, rely on MGL's gas distribution network.

Domestic PNG consumers will also have to pay more. MGL has increased the price by Rs 1 per SCM, affecting around 30 lakh households.

The price revision comes days after Indraprastha Gas Limited (IGL), which supplies CNG in Delhi-NCR and adjoining areas, raised its CNG price by Rs 3.89 per kg to Rs 86.98 per kg. IGL had also cited higher input costs for the increase.

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Meanwhile, crude oil prices extended gains as fresh hostilities between the US and Iran revived concerns over prolonged disruptions. Brent crude traded around $91 a barrel, while US West Texas Intermediate was above $86. Significantly, WTI surged 2.8 per cent on Monday in its biggest one-day gain in three weeks.