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[GROUND REPORT] ‘We were better off using petrol’, say Mumbaikars after steep hike in CNG, PNG prices

Mumbai: There has been a steep hike in Compressed Natural Gas (CNG) and piped gas prices in Mumbai today. CNG prices were hiked by Rs 6 per kg and PNG by Rs 4 per kg respectively. The current prices stand at Rs 86 per kg for CNG and Rs 52.5 per unit for piped gas.

Mirror Now Digital

Updated Oct 4, 2022, 11:44 IST

CNG price hike

Photo : Mirror Now Digital

Mumbai: There has been a steep hike in Compressed Natural Gas (CNG) and piped gas prices in Mumbai today. CNG prices were hiked by Rs 6 per kg and PNG by Rs 4 per kg respectively. The current prices stand at Rs 86 per kg for CNG and Rs 52.5 per unit for piped gas.

Visuals have emerged of CNG gas stations being completely inundated with vehicles. Locals have expressed frustration over the hike in prices, particularly during the festive season. “What can we even do now that this has happened? We were better off using petrol”, a local said while speaking to Mirror Now.

Another commuter has said that the motive behind opting for these forms of fuel was to ensure there would be some savings, however, that is no longer the case.

An order from the oil ministry’s Petroleum Planning and Analysis Cell (PPAC) said that the rate paid for gas produced from old fields was hiked to USD 8.57 per million British thermal units (Btu) from the current USD 6.1.

The order also said that the price of gas from difficult and newer fields was hiked to USD 12.6 per mmBtu from USD 9.92.

The government reviews the price of natural gas on April 1 and October 1. The pricing mechanism evolved from a 2014 concept by which the government used prices in gas surplus countries like US and Russia to set domestic gas prices. However, with the Ukraine war sending gas prices surging skywards, the pressure to hike rates has been felt in India too.

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