MGL raises CNG prices for second time in a month as fuel costs climb amid West Asia tensions

Mahanagar Gas Ltd. (MGL) has raised the price of Compressed Natural Gas (CNG) by ₹2 per kilogram across the Mumbai Metropolitan Region (MMR), marking the second increase in less than a month and taking retail CNG prices to ₹86 per kg.

The latest revision applies to Mumbai, Thane, Navi Mumbai and adjoining areas, and comes against the backdrop of rising global energy prices and concerns over fuel supply disruptions stemming from the ongoing conflict in West Asia. The increase follows a similar ₹2 per kg hike announced on May 14, resulting in a cumulative increase of ₹4 per kg within a fortnight.

The move underscores the growing impact of geopolitical developments on India's energy market. Crude oil prices have remained elevated in recent weeks amid concerns that tensions in the region could disrupt supplies through key shipping routes.

Although CNG pricing is not directly linked to crude oil benchmarks, higher energy costs across the fuel value chain often influence city gas distributors' pricing decisions.

MGL, one of India's largest city gas distribution companies, supplies CNG and piped natural gas across Mumbai and several other markets including Kalyan, Raigad, Ratnagiri, Chitradurga, Davangere, Latur and Osmanabad. The company serves millions of households, commercial establishments and vehicle owners through its gas distribution network.

The latest increase comes at a time when conventional transport fuels have also become more expensive. Petrol and diesel prices have risen sharply during May, with retail rates in Mumbai currently at ₹111.21 per litre and ₹97.83 per litre, respectively.

State-run oil marketing companies—Indian Oil Corporation, Bharat Petroleum Corporation and Hindustan Petroleum Corporation—have collectively raised fuel prices by around ₹7.50 per litre since mid-May.

For MGL, this is the second upward revision after maintaining relative price stability for much of the past year. The previous ₹2 per kg increase announced on May 14 was the company's first significant CNG price revision in recent months and was attributed to higher input costs and changes in gas sourcing economics.

Meanwhile, the Centre has asked oil marketing companies to prepare plans for maintaining LPG inventories equivalent to at least 30 days of domestic demand, highlighting the government's efforts to strengthen energy security as geopolitical uncertainties continue to weigh on global fuel markets.