MGL Hikes CNG Prices in MMR Amid Rising Input Costs

The prices of Compressed Natural Gas (CNG) and Domestic Piped Natural Gas (DPNG) have increased in the Mumbai Metropolitan Region (MMR), starting from September 1. Mahanagar Gas Limited (MGL) has hiked CNG prices by Rs 2 per kg and DPNG by Re 1 per standard cubic meter (SCM). The revised rates are now at Rs 88 per kg for CNG and Rs 53 per SCM for DPNG.

MGL cited rising input costs as the reason for the price hike. The company stated that the ongoing West Asia crisis has led to an increase in international gas prices, which has directly affected MGL's input expenses. A larger portion of the demand for CNG was met through spot regasified liquefied natural gas (RLNG), the price of which has also increased.

MGL said that the latest revision would help partially offset the higher cost of input gas and ensure continued supply of natural gas to its customers. The hike will affect nearly 12.93 lakh vehicles across MMR, including auto rickshaws, taxis, private vehicles, and those operated by transport authorities.

MGL had previously increased CNG prices in May to Rs 86 per kg and PNG to Rs 52 per SCM, citing higher gas procurement costs due to reduced allocation of domestic gas and depreciation of the Indian rupee against the US dollar. The company will continue to explore ways to optimize gas procurement and promote wider adoption of PNG as an environment-friendly alternative.