Mumbai: Mahanagar Gas Limited (MGL) has announced a price hike of Rs 2 per kg for Compressed Natural Gas (CNG) and Rs 1 per standard cubic meter (SCM) for domestic Piped Natural Gas (PNG), citing escalating input costs triggered by ongoing tensions in the Middle East.

The updated rates will take effect at midnight on September 1, raising the retail price of CNG in and around Mumbai to Rs 88 per kg.

According to an official company statement, the price adjustment stems from the Middle East crisis, which has driven up international gas index prices. MGL noted that heavy customer demand has forced it to source a substantial portion of its CNG input through higher-priced spot Regasified Liquefied Natural Gas (RLNG) imports.

MGL stated that the CNG rate increase will only partially cover the surge in input expenses, helping maintain an uninterrupted supply to its consumer base.

The CNG price change impacts roughly 13 lakh vehicle owners across several operational districts:

  • Maharashtra: Mumbai, Thane, Raigad, Ratnagiri, Latur, and Dharashiv

  • Karnataka: Chitradurga and Davangere

Additionally, the rise in input costs has led to a Rs 1 per SCM increase for MGL’s 30 lakh domestic PNG households.

This move follows a similar decision by Indraprastha Gas Limited (IGL)—which supplies the National Capital Region—to increase CNG prices by Rs 3.89 per kg to Rs 86.98 per kg due to rising operational expenses. (PTI)