Mahanagar Gas Hikes CNG Price by Rs 2 in Mumbai Amid Higher Spot LNG Costs

Mumbai: Mahanagar Gas Ltd (MGL) has raised the price of compressed natural gas (CNG) by Rs 2 per kg in Mumbai and other operating areas, citing a sharp increase in input gas costs following the ongoing crisis in the Middle East.

The revised CNG price in and around Mumbai will be Rs 88 per kg, the city gas distributor said in a statement.

The hike follows Indraprastha Gas Ltd (IGL) hiking CNG price in Delhi by Rs 3.89 per kg to Rs 86.98 per kg, from Rs 83.09 per kg earlier. The increase took the cumulative rise in Delhi CNG prices this year to nearly Rs 10 per kg.

CNG in Delhi was priced at Rs 77.09 per kg at the beginning of the year. It was raised by Rs 6 per kg in four instalments in the second half of May, taking the price to Rs 83.09 per kg before Saturday’s hike.

MGL said demand for CNG has remained strong, with a significant portion of the gas required for the CNG segment being sourced through imported spot re-gasified liquefied natural gas (RLNG).

The rise in international-index-linked gas prices has substantially increased the company’s input costs, forcing it to source more gas at higher spot RLNG prices to meet demand, MGL said.

The company said the Rs 2 per kg increase was intended to partially offset the higher cost of gas and ensure continued and sustainable supplies to customers.

MGL has also increased the price of domestic piped natural gas (PNG) by Rs 1 per standard cubic metre (SCM), effective from the same date.

The price revisions come as global energy markets remain sensitive to supply disruptions and geopolitical tensions in the Middle East, with higher international gas prices increasing costs for companies dependent on spot LNG imports.

MGL operates city gas distribution networks across Mumbai, Thane, Raigarh, Ratnagiri, Latur and Dharashiv, as well as Chitradurga and Davangere.

The company supplies CNG to more than 1.3 million vehicles through a network of over 500 stations and has connected around 3 million households to PNG across its operating areas.

(Disclaimer: Except for the headline, this article has not been edited by HDFC Sky editorial team and is auto-generated from PTI feed.)