Mahanagar Gas Limited has increased CNG prices by ₹2 per kg and domestic PNG prices by ₹1 per SCM from September 1.
CNG will now cost ₹88 per kg in and around Mumbai, with MGL citing higher input costs and expensive imported RLNG.
The price hike comes amid global energy market volatility linked to renewed US-Iran tensions and rising crude and gas prices.
MGL Hikes CNG Price By ₹2 Per Kg, PNG By ₹1 Amid Middle East Crisis
MGL attributed the increase to a sharp rise in the price of natural gas linked to international benchmarks
Summary
Mahanagar Gas Limited (MGL) has increased the price 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 Middle East crisis.
The revised CNG price in and around Mumbai will be ₹88 per kg, with the new rates coming into effect from midnight on September 1, the company said in a statement.
MGL attributed the increase to a sharp rise in the price of natural gas linked to international benchmarks. The company also cited strong demand for CNG and higher costs of imported spot regasified liquefied natural gas (RLNG), which accounts for a substantial share of the gas supplied to the CNG segment.
CNG, PNG Prices Rise
MGL said the ₹2 per kg increase in CNG prices would only partially offset the rise in input costs and was necessary to maintain a steady supply of gas to customers.
The company's 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, with MGL raising prices by ₹1 per SCM. The revision will affect around 30 lakh households.
The increase comes days after Indraprastha Gas Limited (IGL), which supplies CNG in Delhi-NCR and adjoining areas, raised its CNG price by ₹3.89 per kg to ₹86.98 per kg, also citing higher input costs.
Middle East Crisis Pushes Up Energy Costs
The latest price revisions come amid renewed volatility in global energy markets as fresh hostilities between the US and Iran have raised concerns over prolonged disruptions to oil and gas supplies.
Brent crude was trading around $91 a barrel, while US West Texas Intermediate (WTI) stood above $86. WTI surged 2.8% on Monday, marking its biggest single-day gain in three weeks.
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The rise in global energy prices is increasing pressure on domestic gas distributors, particularly those relying on imported gas, potentially translating into higher fuel and household energy costs for consumers.
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