Mumbai CNG Price Hiked by Rs 2 per kg, Domestic Gas by Re 1: MGL Cites Middle East Crisis
Mahanagar Gas Limited (MGL) has announced an increase in the price of Compressed Natural Gas (CNG) and domestic piped natural gas (PNG) in Mumbai and surrounding areas, citing rising input costs linked to the ongoing crisis in the Middle East.
The revised CNG price will be Rs 88 per kilogram, up by Rs 2 per kg. Domestic PNG will cost Re 1 more per standard cubic metre (SCM). The new rates take effect from midnight on September 1, the company said in a statement.
MGL explained that the Middle East situation has led to a significant increase in natural gas prices tied to international benchmarks. A substantial portion of the gas supplied for CNG comes from imported spot regasified liquefied natural gas (RLNG), which has become more expensive. The company added that strong demand for CNG has also contributed to the price revision.
According to MGL, the increase will only partially offset the rise in input costs. The move is aimed at ensuring an uninterrupted supply of CNG to customers, the statement said.
The price revision affects approximately 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, numbering around 30 lakh households, will also bear the impact of the increase.
This development comes days after Indraprastha Gas Limited (IGL), which supplies CNG in the Delhi-NCR region, raised its CNG price by Rs 3.89 per kg to Rs 86.98 per kg. IGL had similarly attributed the hike to higher input costs.
The price adjustments follow a broader trend of rising energy prices. Crude oil extended gains as fresh hostilities between the US and Iran heightened concerns about supply disruptions. Brent crude traded near $91 per barrel, while US West Texas Intermediate (WTI) was above $86. WTI surged 2.8 per cent on Monday, marking its biggest one-day gain in three weeks.
Consumers in the affected regions will need to budget for the increased fuel and cooking gas expenses. Analysts note that continued volatility in the Middle East could keep pressure on gas and oil prices in the coming weeks.
