Mahanagar Gas set to increase prices to customers

Vol 8, PW 21 (26 Jan 05) News in Brief

Mahanagar Gas has finally decided to increase the price of piped and compressed natural gas paid by its domestic and commercial customers.

On 16th December the MGL board reversed a decision by former oil minister Ram Naik for an across-the-board ban on any gas price increase. A Mahanagar Gas director confirms the decision but hastily adds that the price hike will not happen in the near future.

We learn the board has decided to increase prices in phases after June 2005. We dont want to shock our consumers with a steep hike right now.

He adds that Mahanagar Gas is waiting for the announcement of a natural gas pipeline policy and also for the ministrys pending decision on natural gas tariffs. In February 2004, Naik ordered MGL to freeze its prices for domestic consumers till December 2004 under the pretext of implementing the recommendations of the Vijayaraghavan Committee report.