Mahanagar Gas hikes rates for CNG and domestic PNG in Mumbai

The natural gas company will increase the price of delivered CNG by Rs 1.5 per KG, while domestic PNG will see a hike of Rs 1/SCM, the statement said.

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26 Aug, 2025 12:21

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Mahanagar Gas (MGL) on July 8 announced a hike in prices for CNG and domestic piped natural gas (PNG) in and around Mumbai starting July 9 to offset the rising input cost, the state-run firm said in a statement.

The natural gas company will increase the price of delivered CNG by Rs 1.5 per KG, while domestic PNG will see a hike of Rs 1/SCM, the statement said.

After this, the revised delivered price, inclusive of taxes, for CNG will be Rs 75.00/Kg and domestic PNG price will be Rs 48/SCM in and around the financial capital of the country.

The state-run firm said the hike has been carried out to meet the additional cost incurred to import natural gas.

"To meet the increasing volume of CNG and domestic piped natural gas (PNG) segments and due to further shortfall in domestic gas allocation, MGL is sourcing additional market priced natural gas (imported LNG) which has resulted in higher gas cost," the firm said in a statement.

The shares of the company closed 1.97 percent lower at Rs 1,666 on NSE.

On June 22, Indraprastha Gas Ltd, the city gas license holder for the national capital and adjoining cities, hiked CNG price by Re 1 per kg to Rs 75.09 in Delhi. It, however, had not touched PNG rates, which continue to be Rs 48.59 per scm.

"Even after the above revision, MGL's CNG offers attractive savings of about 50 percent and 17 percent as compared to petrol and diesel, respectively, at current price levels in Mumbai, while MGL's domestic PNG continues delivering unmatched convenience, safety, reliability and environmental friendliness to consumers," the company said.

The firm also added that "even after the minor increase, MGL's price of CNG and domestic PNG are amongst the lowest in the country".

Natural gas pumped out of the ground and seabed is turned into CNG for running automobiles and piped to households for cooking. But supplies from state-owned Oil and Natural Gas Corporation (ONGC's) domestic fields have not kept pace with the demand.

Gas from ONGC fields makes up for 66-67 per cent of CNG demand and the rest has to be imported.