Mahanagar Gas hikes CNG price by Rs 2/kg to Rs 77/kg effective Nov 22

The price adjustments are aimed at maintaining margins amid increasing input costs.

Trade

• Watchlist
• Portfolio
• Message
• Set Alert

 

 

Choose Stock Exchange: BSE LIVE NSE LIVE

26 Aug, 2025 12:21

Volume

Todays L/H

More

×

Mahanagar Gas (MGL) has hiked CNG price by Rs 2/kg to Rs 77/kg effective from Nov 22.

The gas price hikes comes just days after the conclusion of Maharashtra and Jharkhand elections, and close on the heels of the recent reduction in APM gas supply by Gail India to CGD players like IGL and MGL. On November 16, the government had reduced supplies of low-priced natural gas from old fields to city gas retailers by up to 20%. This followed a 21% reduction announced on October 16.

Shares of MGL opened higher in early trade on November 22 but gave up early gains. On YTD basis, the shares are down by 4%.

Centre had reduced MGL's domestic APM gas allocation in October as well, and the CGD players had responded by saying the decision would have implication of the profitability.

The latest gas allocation cut in November increases reliance on costlier alternatives such as spot or imported LNG, which in turn puts pressure on profitability, and potential price hikes.

State-run Indraprastha Gas Limited (IGL) and Mahanagar Gas Limited (MGL) said that the reduction in APM gas allocation would have an “adverse impact” on their profitability.

Any reduction in APM allocation would result in an increase in the cost of raw material for city gas distributors. Moreover, 50 percent of sourcing will have to be done via market-linked prices, which will further drive up costs. Read More.