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

Mahanagar Gas Limited has raised the price of compressed natural gas across the Mumbai Metropolitan Region by ₹2 per kilogram, pushing the revised rate to ₹86 per kg with immediate effect. The increase is the second in a matter of weeks, following an identical hike of ₹2 per kg on 14 May.

The new rate applies across Mumbai, Thane, Navi Mumbai, and surrounding areas. MGL also supplies CNG to Kalyan, Raigad, Ratnagiri, Chitradurg, Davengere, Latur, and Osmanabad.

READ MGL STATEMENT ON CNG PRICE RISE

Due to a significant increase in gas procurement costs caused by reduced allocation of domestic gas, increased dependence on higher-cost gas sources, and depreciation of the Indian Rupee, the overall cost of gas has risen considerably. Accordingly, Mahanagar Gas Limited has revised the Retail Selling Price (RSP) of Domestic PNG (DPNG) by 20.50 per SCM and CNG by *2.00 per kg across all six Geographical Areas (GAS), effective from midnight of May 29, 2026/ morning of May 30, 2026.

Accordingly, the revised delivered prices inclusive of all taxes of DPNG will be Rs. 52.00/SCM and CNG will be Rs.86.00/Kg in and around Mumbai.

Even after the above revision, MGL's CNG offers attractive savings of about 45% and 12% as compared to petrol and diesel respectively at current price levels in Mumbai.

MGL remains committed to providing affordable and environmentally friendly energy solutions to its customers. The company continues to explore avenues to optimize costs and pass on benefits to consumers, ensuring the widespread adoption of natural gas as a cleaner fuel alternative.

All our valued customers may please take note of these revisions.

Petrol and Diesel Prices Also Rise as Mumbai Fuel Costs Climb

The CNG revision arrives alongside a broader upward movement in retail fuel prices. Petrol became costlier by ₹2.61 per litre in the latest round of revisions, while diesel rose by ₹2.71 per litre, marking the fourth such increase in under a fortnight. Petrol in Mumbai now stands at ₹111.21 per litre, with diesel priced at ₹97.83 per litre.

The successive increases reflect a delayed pass-through of elevated global crude oil prices, driven in significant part by supply disruptions stemming from the US-Iran conflict. Indian Oil Corporation, Bharat Petroleum Corporation Limited, and Hindustan Petroleum Corporation Limited, which collectively control approximately 90 per cent of the domestic fuel retail market, have raised petrol and diesel prices by around ₹7.50 per litre since 15 May.

Government Orders 30-Day LPG Reserves as West Asia Conflict Strains Supply Chains

The central government has directed state-run fuel retailers to expand liquefied petroleum gas storage capacity to cover at least 30 days of domestic demand, citing supply vulnerabilities exposed by the ongoing West Asia conflict.

"We are working on the strategic reserves. Oil marketing companies have been asked to work out (a plan) to have LPG reserves for a minimum of 30 days with them, and they are working on it," Sujata Sharma, joint secretary in the petroleum ministry, told reporters on Friday.

The directive covers Indian Oil Corporation, Bharat Petroleum, and Hindustan Petroleum, each of which has been asked to develop plans for additional storage above existing commercial inventories. Sharma added that the government was also reviewing options to expand crude oil storage capacity, without providing further detail.

How the US-Iran War Disrupted India's Energy Imports

The three-month-long US-Iran conflict placed considerable strain on India's energy supply chains. The country sourced approximately 40 per cent of its crude oil imports, 65 per cent of its natural gas, and 90 per cent of its LPG supplies from Gulf nations, all of which faced disruption during the conflict.

India has managed to secure alternative sources for crude oil and natural gas, but LPG supply constraints have compelled the government to regulate distribution to commercial users. Domestic LPG production has reached an all-time high of approximately 52,000 tonnes per day, according to ministry figures.

Sharma confirmed that consumer supply has remained largely uninterrupted. "No dry out reported at any LPG distributorship," she said, while noting that "abnormal sale is being observed at many petrol pumps."

Fuel Demand Surges Across India as Buyers Shift to State-Run Outlets

A significant widening in the price gap between state-run and private fuel retailers has driven a notable shift in purchasing behaviour. Private retailers, having raised prices considerably more steeply than their public-sector counterparts, have seen diesel sales fall by 38 per cent. State-run bulk diesel sales have declined by 29 per cent.

Agricultural demand and the migration of bulk buyers to state-run outlets are driving much of the surge at government-operated pumps, Sharma said. More than 150 districts have recorded petrol sales growth exceeding 30 per cent, with 14 districts reporting a doubling of volumes. Diesel sales have risen by more than 30 per cent across 156 districts, with six districts registering growth in excess of 100 per cent.

Petrol and diesel sold at state-owned outlets continue to be priced below cost, while bulk commercial users such as telecom towers are charged at market rates.

Centre Moves Against Hoarding as Abnormal Fuel Purchases Raise Alarm

The government is closely monitoring developments and has advised state governments and Union territories to form dedicated enforcement teams to counter fuel hoarding and black-market activity. The petroleum ministry said the country holds sufficient stocks of petrol, diesel, LPG, crude oil, and natural gas, and that refineries are operating at optimum levels.