After nearly half a dozen times of hikes, the city gas utility Mahanagar Gas on Tuesday announced a reduction of Rs 2.50 per kilogram to Rs 87 a kg in the price of compressed natural gas (CNG), effective from Wednesday.

Share Market Live

NSE

Mahanagar Gas Ltd (MGL), however, left the price of cooking gas PNG unchanged.

Since April 6, the price of CNG had gone up by Rs 29.50 per kilogram and that of piped natural gas (PNG) for residential use by Rs 18.50 at Rs 54.

CNG price on November 4, 2022 had peaked at Rs 89.50 per kilogram and that of PNG at Rs 54 a kg.

Also Read: Budget 2023 has to get deficit down to at least 5.8% of GDP, say economists

The state-owned company said the marginal cut in prices is in anticipation of the increased allocation of domestically-produced natural gas from high pressure-high temperature areas to distribution entities by the oil ministry, which lowers its input gas cost.

After this reduction, the retail price of the fuel will come down to Rs 87 per kg in and around Mumbai, MGL said in a statement.

This is the first price reduction since the second week of April 2022 when it had announced a price reduction following the massive cut in VAT on the fuel by the state government from 13.5 per cent to just 3 percent.

But on the same day, the Centre more than doubled the prices at source, leading to a massive increase by the utility from the second week of April. Since then it has been jacking up prices regularly.

On April 1, 2022 the price of CNG was reduced by Rs 6/kg to Rs 60 per kg, and PNG by Rs 3.50 to 36 per scm (standard cubic metre), following the reduction in Value Added Tax (VAT).

Also Read: Budget 2023: A look at how markets have performed to Budget announcements over past 5 years

(Edited by : Anushka Sharma)