Mahanagar Gas Limited (MGL) has increased the price of Compressed Natural Gas (CNG) by ₹2 per kg across all its geographical areas (GAs), citing a sharp rise in input gas costs amid the ongoing crisis in the Middle East and the resulting increase in international-index-linked gas prices.
With the revised pricing, CNG will now cost ₹88 per kg in and around Mumbai, effective from midnight of August 31, 2026, or the morning of September 1, 2026.
The company said the CNG segment is witnessing significant demand, with a major portion of its input gas requirement currently being met through imported spot Regasified Liquefied Natural Gas (RLNG). The increase in international gas prices has consequently pushed up MGL’s cost of sourcing gas.
According to MGL, the ongoing geopolitical crisis in the Middle East has contributed to a considerable increase in input gas prices linked to international indices. At the same time, the higher demand for CNG has required the company to source additional quantities of gas at prevailing spot RLNG prices.
Rising gas costs squeeze CNG margins
The increase in the cost of input gas has had a significant impact on MGL’s overall cost of supplying CNG. The company said the ₹2 per kg increase is intended to partially offset the higher cost of input gas while ensuring the continued and sustained availability of CNG to customers.
MGL’s decision comes at a time when natural gas marketers and city gas distribution companies are facing increased exposure to international spot gas prices as domestic gas availability remains insufficient to meet the entire requirement of the CNG segment.
The company has therefore opted for a measured price increase rather than passing on the entire increase in input costs to consumers.
Domestic PNG price also increased
Along with the CNG price revision, MGL has also announced an increase in the price of Domestic Piped Natural Gas (DPNG) by ₹1 per standard cubic metre (SCM).
The revised DPNG price will also come into effect from midnight of August 31, 2026, or the morning of September 1, 2026.
The simultaneous revision in CNG and DPNG prices reflects the pressure being exerted by higher gas procurement costs across MGL’s operations.
MGL reiterates commitment to cleaner fuel adoption
Despite the price increase, MGL said it remains committed to providing affordable and environmentally friendly energy solutions to its customers.
The company said it continues to explore avenues to optimise costs and pass on the benefits of such efficiencies to consumers. MGL also reiterated its focus on supporting the widespread adoption of natural gas as a cleaner alternative to conventional fuels.
For CNG users in Mumbai and surrounding areas, the ₹2 per kg increase means higher running costs for private vehicles, taxis, autorickshaws and commercial fleets. However, MGL’s move also underlines the growing influence of international spot gas prices on India’s city gas distribution sector.
The latest revision highlights the delicate balance faced by CGD companies: meeting rising CNG demand while managing volatile international gas procurement costs and maintaining the affordability advantage of natural gas over competing fuels.
