Mahanagar Gas increases CNG and domestic PNG prices in Mumbai, Report: Check latest rates IGL and Gujarat Gas

Mahanagar Gas Limited (MGL) increased the prices for Compressed Natural Gas (CNG) and domestic Piped Natural Gas (PNG) on Monday, July 8 in and around the city of Mumbai reported CNBC TV-18 quoting the company's press statement.

The natural gas distributor raised its prices to ₹1.50 per kilogram for CNG, bringing the total price up to ₹75 per kg, including taxes. For their domestic PNG prices, the price went up ₹1 per standard cubic meter (SCM) up to ₹48 per SCM, inclusive of taxes. Both the prices are effective midnight tonight, starting July 9.

"To meet the increasing volume of CNG and domestic PNG segments & due to further shortfall in domestic gas allocation, MGL is sourcing additional market priced natural gas (imported RLNG) which has resulted in higher gas cost," reported CNBC TV-18 quoting MGL.

Other natural gas distributors such as Indraprastha Gas (IGL) hiked their prices of CNG by ₹1 per kg in December 2023, over reasons of high input costs. In March 2024, they reduced the prices by ₹2.5 per kg as the costs of inputs went down. Gujarat Gas also raised its prices of industrial natural gas to ₹2.48 from ₹2 per SCM in the Morbi region of the State, since July 4.

Morgan Stanley put an overweight rating on IGL after the price hike, as quoted by CNBC-TV18. The target price was set at ₹575 per share.

Mahanagar Gas shares closed 1.36 per cent lower at ₹1,675.60 on July 8, as compared to the previous day's close at ₹1698.70. Indraprastha Gas shares closed 0.53 per cent higher at ₹524.85 on July 8, as compared to ₹522.10 the previous day. Also, Gujarat Gas shares closed 1.22 per cent higher at ₹652.75, compared to ₹644.90 the previous day.