m. Ta. Special Representative, Mumbai:
Although the price of natural gas i.e. CNG fuel has been reduced by Rs 6 recently, it had increased by Rs 37 in almost 10 months before that. After that, in the wake of the Ukraine-Russia war, CNG prices are likely to rise again in the coming years.
Natural gas rates are currently (as of September-end) at $9.92 per million unit, which was $6.13 per million unit by the central government. The new rates will be applicable from October. At the same time, the coming period is the festival of Diwali along with Navratri. This is likely to increase demand for CNG and PNG everywhere. As a result, there is a possibility of further increase in natural gas price from October.
According to an earlier survey conducted by Jefferies, between October 2022 and March 2023, these rates are likely to increase by 128 to 1,300 percent. This price hike is likely to have a big impact on CNG and natural gas for cooking, which are widely used in Mumbai.
More results in Mumbai
Only three companies supply CNG and Domestic Cooking Natural Gas (PNG) in India. These include Mahanagar Gas in Mumbai, Indraprastha Gas in Delhi and Gujarat Gas. Of these, Mahanagar Gas Limited has the largest network. Mahanagar Gas and Indraprastha Gas together supply 85 percent of gas. That is why this price hike is likely to have a major impact on CNG and PNG in Mumbai.