Mahanagar Gas Limited (MGL) announced a significant price increase for compressed natural gas (CNG) and domestic piped natural gas (PNG) effective September 1, 2026. According to Business Standard, the company raised CNG prices by ₹2 per kg to ₹88 per kg and domestic PNG by ₹1 per standard cubic meter (SCM) for the 30 lakh domestic consumers. The revised rates stand at ₹88 per kg for CNG and ₹53 per scm for PNG. The price revision was implemented from midnight on August 31, following a revision in input gas costs amid the ongoing Middle East crisis. As per The Hindu BusinessLine, the company stated that in view of the ongoing crisis in the Middle East, which has resulted in a significant increase in input gas prices linked to international indices, MGL has announced a revision in the prices of CNG.
The price increase was attributed to rising input gas costs linked to international indices due to ongoing Middle East tensions, as reported by The Hindu BusinessLine and StockGro. MGL noted that there is significant demand for CNG and a major portion of input gas for the CNG segment is being met through imported spot RLNG (Regasified Liquefied Natural Gas), where prices have become more expensive due to the crisis. The company stated that MGL now has to source gas at higher spot RLNG to meet the increased CNG demand, with the West Asia crisis pushing up input gas prices linked to international indices, significantly affecting the overall cost of gas supplied by MGL. The company emphasized that the price hike will only partially offset the rising cost of input gas and ensure continued and sustained supply of CNG to customers, while the higher cost of sourcing gas has significantly increased the company's overall input cost. StockGro analysis notes that city gas distribution companies purchase natural gas from different sources, including domestic gas allocations and imported LNG, and when gas costs rise, companies may absorb a portion of the increase or revise retail prices to partially offset higher input costs.
The price revision affects 13 lakh CNG vehicles across multiple regions including Mumbai, Thane, Raigad, Ratnagiri, Latur and Dharashiv in Maharashtra and Chitradurga and Davangere in Karnataka, according to The Hindu BusinessLine. The revised CNG price will be ₹88 per kg in and around Mumbai, representing a substantial portion of the regional CNG market that depends on Mahanagar Gas's supply network. The hike is likely to affect lakhs of CNG vehicle owners in Mumbai and surrounding areas, including autorickshaw, taxi and private vehicle users, coming at a time when transport costs are already under pressure. On the domestic PNG front, the same jump in input costs resulted in a ₹1 hike per SCM of gas for the 3 million domestic consumers. The announcement follows a similar trend, as peer Indraprastha Gas had recently hiked CNG prices by ₹3.89 per kg to ₹86.98 per kg due to rising input costs in the national capital region, with the retail CNG price in Delhi now standing at ₹83.09 per kg with effect from August 29. For consumers, higher CNG and PNG prices increase fuel and household energy costs, while for MGL, the financial impact will depend on factors such as future gas procurement costs, the extent of price pass-through, customer demand and sales volumes.
The latest increase takes the cumulative rise in Delhi CNG prices this year to nearly ₹10 per kg, with Delhi CNG priced at ₹77.09 per kg at the beginning of the year and standing at ₹83.09 per kg before the latest hike. CNG prices were also raised in adjoining cities, with the fuel now costing ₹95.59 per kg in Noida and Ghaziabad and ₹92.01 per kg in Gurugram. Domestic PNG prices in Delhi, however, remain unchanged at ₹49.59 per SCM. Indraprastha Gas (IGL) had cited similar reasons, saying the renewed West Asia crisis had affected LNG cargo movements through the Strait of Hormuz. IGL operates city gas distribution networks across Delhi and several cities in Uttar Pradesh, Haryana and Rajasthan, besides parts of Karnataka, with more than 30,000 km of pipeline network and over 1,000 CNG stations, supplying fuel to more than 21 lakh CNG vehicles and PNG to nearly 35 lakh households.
MGL reported its first quarter earnings on July 30, 2026, showing mixed financial results amid the challenging market environment. As per CNBC TV18, the company's net profit declined 39.5% to ₹193 crore from the previous year's ₹319 crore, but showed sequential improvement with a 49% increase from the previous quarter's ₹130 crore. The company's revenue increased 13.9% from last year and 15.6% from the previous quarter to ₹2,373 crore. However, the margin contracted on an annual basis to 14.5% from 24% but expanded from the previous quarter's 12.7%. The company's EBITDA declined 31.5% to ₹343 crore from the previous fiscal's ₹500.6 crore, but showed sequential growth of 31.9% from ₹260 crore. CNBC TV18 reports that shares of Mahanagar Gas ended 2.3% lower on Monday at ₹1,067, with the stock down 4.5% over the last one month, taking its year-to-date drop to 5.5%. The stock performance reflects investor concerns about the company's ability to manage rising input costs and maintain profitability amid the challenging market conditions.
