CNG Gets Costlier in Mumbai as MGL Raises Prices by ₹2 per Kg

Mahanagar Gas Ltd (MGL) has increased the prices of Compressed Natural Gas (CNG) by ₹2 per kg and domestic Piped Natural Gas (PNG) by ₹1 per standard cubic metre (SCM), citing higher input costs amid the ongoing crisis in the Middle East.

The revised CNG price has been fixed at ₹88 per kg in and around Mumbai, with the new rates coming into effect from midnight on September 1. MGL said the increase was necessary as international gas prices have risen significantly due to geopolitical tensions in the Middle East.

According to the company, demand for CNG remains strong, while a substantial portion of the gas required for the CNG segment is sourced through imported spot Regasified Liquefied Natural Gas (RLNG). Prices of spot RLNG have increased in line with international energy markets, putting pressure on the company's input costs.

MGL said the latest price revision would only partially offset the increase in input gas costs, while helping ensure the continued and reliable supply of CNG to customers.

The company's distribution network serves around 13 lakh CNG vehicles across Mumbai, Thane, Raigad, Ratnagiri, Latur and Dharashiv in Maharashtra, as well as Chitradurga and Davangere in Karnataka.

Domestic PNG consumers will also face higher bills following the ₹1 per SCM increase. MGL supplies piped gas to around 30 lakh domestic consumers, making the revision significant for households using PNG for cooking and other requirements.

The announcement comes days after Indraprastha Gas Ltd (IGL), MGL's peer serving Delhi-NCR and adjoining areas, raised its CNG price by ₹3.89 per kg. Following the hike, CNG in the national capital region is priced at ₹86.98 per kg.

The successive price revisions highlight the impact of global energy market volatility and geopolitical tensions on India's city gas distribution sector, particularly where imported gas forms a substantial part of the supply mix.