Mahanagar Gas Limited (MGL) has increased prices of piped natural gas (PNG) and compressed natural gas (CNG) across the Mumbai Metropolitan Region, citing higher procurement costs driven by reduced domestic gas allocation, increased reliance on costlier imports, and depreciation of the Indian rupee. Under the revised rates announced on Saturday, domestic PNG prices have been raised by 50 paise per unit, while CNG prices have been increased by ₹2 per kilogram.
The new CNG rate across Mumbai, Thane, Navi Mumbai and adjoining areas now stands at ₹86 per kg, while PNG is priced at ₹52 per unit. The company stated that the price revision was necessary due to a sharp rise in input costs, adding that it continues to explore measures to optimise expenses while maintaining the wider adoption of cleaner fuel alternatives. MGL supplies gas to key urban and industrial regions including Mumbai, Thane, Navi Mumbai, Kalyan and surrounding areas.
The latest hike is the second CNG price revision in recent weeks, following an earlier increase in May. The revision is expected to impact operating costs for private vehicle owners, taxi services, and public transport fleets that rely heavily on CNG, although it remains relatively more economical compared to petrol and diesel on a per-kilometre basis.
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Fuel prices across the broader market have also been under pressure, with petrol and diesel rates rising in recent days amid global volatility in crude oil markets. The increases are being attributed in part to supply disruptions linked to geopolitical tensions in the Middle East, including the ongoing conflict involving the United States, Israel, and Iran, which has affected energy shipping routes and market stability.
The Strait of Hormuz, a key transit point for nearly one-fifth of global oil and liquefied natural gas shipments, has seen heightened concerns over supply security, contributing to fluctuations in international energy prices. Analysts say such disruptions tend to quickly transmit into domestic fuel pricing, particularly in import-dependent economies like India.
The government has urged fuel conservation measures, with Prime Minister Narendra Modi recently calling for reduced non-essential travel, increased use of remote work, and broader energy-saving practices to help manage import costs and protect macroeconomic stability amid sustained global energy volatility.
Also Read: India Hikes Petrol, Diesel And CNG Prices Amid Global Oil Supply Concerns