The city gas utility Mahanagar Gas on Thursday announced a steep reduction in the retail price of CNG by Rs 6 per kg and piped gas by Rs 3.50 per scm, effective Friday, even as the Centre more than doubled the price of domestically-produced natural gas earlier in the day.
In a statement on Thursday, MGL said consequent to the reduction in VAT on natural gas from 13.5 per cent to 3 per cent from April 1 by the state government, MGL has decided to pass on the entire benefit to end-consumers.
Accordingly, the retail price of compressed natural gas (CNG) is cut by Rs 6 to Rs 60 per kg and domestic piped natural gas (PNG) by Rs 3.50 to Rs 36/scm in and around Mumbai effective Friday, it said.
When asked for a reaction to the price hike by the Centre for the producers, an MGL spokesperson told PTI that the company will evaluate the impact of the massive increase in supply prices in the due course of time and revise its retail prices accordingly.