Price Revision Announced
Mahanagar Gas Limited (MGL) has revised the prices of compressed natural gas (CNG) and domestic piped natural gas (DPNG) in Mumbai, effective from September 1. The CNG price has been increased by ₹2 per kg, bringing it to ₹88 per kg, while domestic PNG has become costlier by ₹1 per standard cubic metre (SCM), with the revised rate set at ₹53 per SCM.
The new rates apply across the Mumbai Metropolitan Region (MMR) and came into effect from midnight of August 31, 2026, or the morning of September 1, as stated by MGL.
Reasons Behind the Hike
MGL attributed the price increase to a sharp rise in input gas costs, which it linked to the ongoing crisis in the Middle East. In a statement, the company said, "In view of the ongoing crisis in the Middle East, which has resulted in a significant increase in input gas prices linked to international indices, MGL has announced a revision in the prices of CNG."
According to MGL, the rise in input gas prices has "significantly impacted the overall cost of gas supplied by the company." The company also noted that a major portion of the gas used for the CNG segment is met through imported spot regasified liquefied natural gas (RLNG), which has become more expensive. MGL stated that it now has to source gas at higher spot RLNG prices to meet increased CNG demand, pushing up its overall input expenses.
Impact on Supply and Affordability
MGL said the revised rates are aimed at partly offsetting the higher input gas cost. The company stated that the move would help ensure the continued and sustained supply of CNG to customers. MGL added that it remains committed to providing affordable and environmentally friendly fuel, and it said it would continue exploring ways to optimise costs and promote the wider use of natural gas as a cleaner fuel.
The price hike is likely to affect lakhs of CNG vehicle owners in Mumbai and surrounding areas, as reported by NewsX. However, MGL emphasised that the adjustment was necessary to maintain uninterrupted supply to consumers.