Business · India Bureau
Mahanagar Gas raises CNG, domestic PNG rates citing Middle East tensions
Mahanagar Gas Limited has increased compressed natural gas prices by ₹2 per kilogram and domestic piped natural gas rates by ₹1 per standard cubic meter, effective from September 1. The utility attributed the hike to elevated input costs driven by geopolitical tensions in the Middle East.
LSN India ·
Mahanagar Gas Limited announced the price revision on Monday, with CNG now retailing at ₹88 per kilogram in Mumbai and surrounding areas including Thane, Raigad, and Ratnagiri. The new rates take effect from midnight on September 1.
The company cited escalating international gas prices linked to Middle East tensions as the primary reason for the increase. A significant portion of input gas for the CNG segment is sourced through imported spot liquefied natural gas, where prices track international indices and have risen sharply in recent weeks, the utility said.
MGL stated that the price revision will only partially offset the rising cost of input gas while ensuring uninterrupted supply to consumers. The region's approximately 13 lakh CNG vehicles and domestic PNG consumers are expected to feel the impact of the tariff adjustment.
The company emphasized that maintaining consistent CNG availability across its service territory required the price adjustment, given the volatility in global energy markets and the dependence on imported spot RLNG to meet regional demand.