Mahanagar Gas Increases CNG Price by ₹2 and PNG by ₹1 Citing Higher Input Costs

Mahanagar Gas has increased CNG prices by ₹2 per kg and domestic PNG prices by ₹1 per SCM, effective September 1, in response to rising input costs driven by Middle East tensions and imported spot RLNG prices. The revision impacts millions of vehicle owners and households across Maharashtra and Karnataka.

MUMBAI — Mahanagar Gas Ltd (MGL) has announced a price hike for Compressed Natural Gas (CNG) and domestic Piped Natural Gas (PNG), effective from midnight on September 1. The revision raises CNG prices by ₹2 per kg and domestic PNG by ₹1 per standard cubic meter (SCM).

Following the adjustment, the retail price of CNG will stand at ₹88 per kg in and around Mumbai. According to an official statement from the company, the price revision was necessitated by rising input gas costs linked to international indices, driven primarily by the ongoing crisis in the Middle East.

MGL stated that there is significant demand for CNG across its operational network. A major portion of the input gas required for the CNG segment is currently met through imported spot Regasified Liquefied Natural Gas (RLNG), which carries higher procurement costs. The company noted that the latest price hike will only partially offset the rising input costs while aiming to ensure the continued and sustained supply of gas to customers.

The city gas distribution network affects a substantial consumer base. Approximately 13 lakh CNG vehicles operating in Mumbai, Thane, Raigad, Ratnagiri, Latur, and Dharashiv in Maharashtra, alongside Chitradurga and Davangere in Karnataka, depend on MGL's supply network. Additionally, the same rise in input costs has led to a ₹1 per SCM increase in domestic PNG prices, impacting nearly 30 lakh domestic households.

This price adjustment follows a similar move by peer entity Indraprastha Gas, which recently hiked CNG prices in the National Capital Region and surrounding areas by ₹3.89 per kg, bringing its rate to ₹86.98 per kg due to comparable input cost pressures.

"The recent price hike by Mahanagar Gas highlights how geopolitical tensions directly impact domestic utility costs and urban logistics. When input expenses for imported spot RLNG rise, city gas distributors face a tight margin between absorbing losses and passing costs to consumers. For businesses dependent on fleet operations and transport, fuel price volatility requires strict cost management and strategic route planning to protect operational margins." — Dr. Shishir Gupta, Founder & CEO, StartupLanes