CNG, PNG prices to drop in Mumbai from midnight on March 31

Days after the Maha Vikas Aghadi government in Maharashtra decided to reduce the Value Added Tax (VAT) on CNG and PNG from 13.5 percent to 3 percent from April 1, Mahanagar Gas Limited (MGL) on Thursday evening announced its decision to pass on the entire benefit to the end consumers.

Accordingly, the price of Compressed Natural Gas (CNG) has been reduced by ₹ 6.00/Kg and Domestic Piped Natural Gas (PNG) by ₹ 3.50/ SCM in and around Mumbai effective from midnight of March 31, 2022 / early morning of April 1, 2022.

The revised delivered prices inclusive of all taxes of CNG will be ₹ 60/Kg and Domestic PNG Price will be ₹ 36/SCM in and around Mumbai.

“The revised price of CNG offers attractive savings of about 65% and 41% as compared to petrol and diesel respectively at current price levels in Mumbai. MGL’s Domestic PNG offers around 32% savings as compared to the current price of Domestic LPG while delivering unmatched convenience, safety, reliability, and environmental friendliness to consumers,” an MGL spokesperson said.

During the recent Budget Session of the Maharashtra State Legislative Assembly, Deputy chief minister Ajit Pawar, who is also the finance minister, announced a reduction in CNG rates saying it will benefit the common man. The reduction in tax will cost the state Rs. 800 crore annually.

Based on this announcement, the last day of the Budget session on Friday saw Pawar direct the finance department to initiate the process and issue notifications to that effect.

“The state government has always strived towards extending relief to the common man. The VAT reduction in CNG is a step in that direction. It will help lakhs and lakhs of people who rely on auto-rickshaws and taxis to commute daily,” Pawar had told the media.

Natural gas being environment-friendly is largely used for domestic piped gas supply and also for CNG-powered motor vehicles, auto-rickshaws, taxis, and private vehicles. CNG prices in Maharashtra have seen a marked increase over the last 18 months, with the latest price revision coming on January 9, when it was hiked by Rs. 2.50/kg.

Between February and November 2021, CNG prices in Maharashtra increased from Rs. 49.40/kg to Rs. 61.50/kg, registering a 24.50 percent increase in just 10 months.

Officials said that despite the reduction in VAT from April 1, prices of CNG will vary slightly within Mumbai and outside largely due to the difference in the logistics cost borne by MGL, which supplies CNG to Mumbai and its adjoining areas. CNG is retailed across 278 outlets in the state.