Top News

Mahanagar Gas Limited (MGL) on Monday announced a hike of Rs 2 per kg in CNG prices, citing higher input costs amid the ongoing crisis in the Middle East.

The company has also increased the price of domestic piped natural gas (PNG) by Re 1 per standard cubic metre (SCM).

According to an official statement, the revised CNG price will be Rs 88 per kg and will come into effect from midnight on September 1.

Input Costs Rise Amid Middle East Crisis

MGL said the ongoing crisis in the Middle East has led to a significant increase in input gas prices linked to international indices, prompting the revision in CNG prices.

The company said demand for CNG remains significant, while a major portion of the input gas used for the CNG segment is sourced through imported spot regasified liquefied natural gas (RLNG), where prices are higher.

According to MGL, the CNG price increase will only partially offset the higher cost of input gas and help maintain a continued and sustained supply to customers.

PNG Price Also Increased

The increase in input costs has also resulted in a Rs 1 per SCM increase in the price of domestic PNG.

Around 13 lakh CNG vehicles in Mumbai, Thane, Raigad, Ratnagiri, Latur and Dharashiv in Maharashtra, as well as Chitradurga and Davangere in Karnataka, depend on MGL's supply network.

On the domestic PNG front, the rise in input costs has resulted in a Re 1 per SCM increase for around 30 lakh domestic consumers.

IGL Had Raised CNG Prices Earlier

The announcement comes days after Indraprastha Gas Limited, which supplies CNG to the national capital region and surrounding areas, increased its CNG price by Rs 3.89 per kg.

Following the hike, CNG in those areas was priced at Rs 86.98 per kg, with the company also citing higher input costs.