MGL revises its CNG, PNG rates

MGL revises its CNG, PNG rates

With an increase in the value added tax (VAT) rates from 12.5 per cent to 13.5 per cent from September 18, the prices of compressed natural gas (CNG) used in vehicles and domestic piped natural gas (PNG) is expected to go up.

The Mahanagar Gas Ltd (MGL) in statement has said, “In view of the increase in VAT rates from 12.5 per cent to 13.5 per cent by the Maharashtra government from September 17, MGL is constrained to revise its CNG and domestic piped gas prices to the extent of revised tax implication.”

This means that the increase in prices of those societies who have fitted themselves with the PNG and the car owners using CNG will see anywhere between Rs 24.93 per scm (standard cubic metre) to Rs 25.01 scm and Rs 41.57 per kg to Rs 42.32 per kg respectively.

The MGL also supplies CNG for public utility vehicles such as the BEST buses and 4 lakh private vehicles while over eight lakh consumers in the areas or municipalities adjoining Mumbai use PNG.

The rate has been finalised by the MGL after factoring costs such as local municipalities octroi/local body tax (LBT) and or cess rates, said the statement.

A big shift to the PNG among the common man was seen after the BMC as well as the Centre pushed the safety benefits of the system over the conventional cooking cylinder.

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