Mahanagar Gas Limited (MGL) has announced a Re 1 per kg increase in the price of compressed natural gas (CNG) across Mumbai and surrounding areas, effective November 1. The hike, attributed to rising input gas procurement costs due to the ongoing conflict involving the US, Israel, and Iran, will bring the price to Rs 90 per kg. This marks the second price increase in two months, following a similar Re 1 hike on October 1.
The company cited a sharp rise in the prices of domestically produced gas and imported regasified liquefied natural gas (RLNG), both linked to international benchmarks, as the primary reason for the revision. MGL also pointed to a reduction in domestic gas allocation and increased reliance on higher-cost sources as contributing factors. The price adjustment aims to partially offset these increased costs while ensuring uninterrupted CNG supply.
The latest hike will impact nearly 12.93 lakh vehicles in the Mumbai Metropolitan Region (MMR), including auto-rickshaws, taxis, private vehicles, and public transport operated by state authorities and municipal corporations. MGL had previously raised CNG prices by Re 1 per kg on October 1 and by Rs 2 per kg in September, bringing the price to Rs 89 per kg and Rs 88 per kg, respectively. In May, the company had also revised CNG prices to Rs 86 per kg and piped natural gas (PNG) rates to Rs 52 per standard cubic metre (SCM).
MGL stated that it will continue to explore ways to optimize procurement costs while promoting natural gas as a cleaner fuel alternative.