Mumbai, Jul 8 (IANS): The Mahanagar Gas Ltd has hiked the prices of CNG by Rs 1.50/kg and domestic PNG by Rs 1/SCM in Mumbai and its surrounding areas with effect from midnight (July 8-9) on Monday, an official said.

Accordingly, the price of CNG will go up from Rs 73.50/kg to Rs 75/kg, and the rate of domestic PNG will increase from Rs 47/SCM to Rs 48/SCM, inclusive of all taxes for Mumbai and surrounding regions.

The latest hike is attributed to meeting the increasing volumes of CNG-PNG demand and owing to a shortfall in domestic gas allocation, the MGL is sourcing additional requirements from the market-priced natural gas.

The fresh revision will hit over a million vehicle owners who use CNG, and around 25 lakh households who get PNG supply to their homes.

Ahead of the Lok Sabha elections on March 6, the price of CNG was slashed by Rs 2.50/kg and on October 2, 2023, the PNG prices were also slashed by Rs 2/SCM.

The MGL claimed that despite the latest increase, its CNG offers a saving of 50 per cent and 17 per cent, compared with petrol and diesel prices respectively, and its rates for both CNG-PNG remain among the lowest in the country.