Digital Scoop India Official Platform of Digital Scoop India Featuring Latest & Best News #Articles #Bytes #Entertainment #DigitalScoopMagazine
Related Articles
Mahanagar Gas Ltd (MGL), a leading provider of natural gas in Mumbai and adjoining municipalities, has taken a significant step in favor of consumers by reducing the prices of Compressed Natural Gas (CNG) and Piped Natural Gas (PNG). The CNG price has been slashed by ₹3 per kilogram, and the PNG price has been reduced by ₹2 per standard cubic meter (scm).
The revised Maximum Retail Price (MRP) for CNG, effective immediately, stands at ₹76.00 per kilogram. For Domestic PNG (DPNG), consumers will now pay ₹47.00 per SCM.
The price reduction comes as a welcome relief to consumers and is the result of various factors, including a decrease in the cost of domestically produced High-Pressure High-Temperature (HPHT) Natural Gas at the national level. The government bi-annually sets prices for locally-produced natural gas, which serves various purposes, including automobile fuel as CNG, household kitchen cooking through piped supply, electricity generation, and fertilizer production.
Starting October 1, for the six-month period, the price of gas extracted from deep-sea and high-pressure, high-temperature (HPTP) areas has been lowered to USD 9.96 per million British thermal unit (mmBtu) from USD 12.12, as reported by the oil ministry’s Petroleum Planning and Analysis Cell (PPAC).
The pricing of locally-produced natural gas undergoes revisions on April 1 and October 1 each year, with particular consideration for newer fields located in challenging and remote areas, such as deep-sea locations.
The recent global increase in energy prices, particularly in the wake of Russia’s invasion of Ukraine, had led to elevated rates for locally-produced gas. During the period between October 2022 and March 2023, gas from legacy or old fields was priced at USD 8.57 per mmBtu, while gas from difficult fields was priced at USD 12.46 per mmBtu.
However, from April 1, the price for gas extracted from difficult fields was reduced to USD 12.12 per mmBtu for the subsequent six-month period, contributing to the reduction in CNG and PNG prices.
This move by Mahanagar Gas Ltd aims to provide much-needed relief to consumers amid fluctuating global energy prices and underscores the company’s commitment to offering cost-effective and environmentally friendly natural gas solutions to its customers.
Sources By Agencies
