Mumbai CNG price rises to ₹86 per kg in MGL's second hike this month

Mahanagar Gas Limited (MGL) has increased compressed natural gas (CNG) prices by ₹2 per kilogram across Mumbai, Thane, Navi Mumbai, and surrounding areas, bringing the new rate to ₹86 per kg. This is the second hike in May, following an identical ₹2 increase on May 14, effective immediately. The price adjustment reflects rising gas procurement costs for MGL, attributed to reduced domestic gas allocation, higher reliance on expensive gas sources, and a depreciating Indian Rupee. The company cited these factors in revising the Retail Selling Price (RSP) of CNG by ₹2 per kg across all six geographical areas (GAS), effective from May 29 midnight. Despite the increase, MGL’s CNG remains 45% cheaper than petrol and 12% cheaper than diesel in Mumbai, where petrol now costs ₹111.21 per litre and diesel ₹97.83 per litre. The broader fuel price hikes align with a delayed response to elevated global crude oil prices, exacerbated by supply disruptions from the US-Iran conflict. India’s fuel retailers—Indian Oil Corporation, Bharat Petroleum, and Hindustan Petroleum—have raised petrol and diesel prices by ₹7.50 per litre since May 15. The central government has since directed these companies to expand liquefied petroleum gas (LPG) storage capacity to cover at least 30 days of domestic demand, citing supply vulnerabilities from the ongoing West Asia conflict. The three-month US-Iran conflict strained India’s energy supply chains, as the country imports 40% of its crude oil, 65% of its natural gas, and 90% of its LPG from Gulf nations. While alternative sources have been secured for crude and gas, LPG supply remains a concern, prompting government intervention to stabilize reserves.