• Source:JND
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Mumbai CNG Price: Mahanagar Gas Limited (MGL) has implemented an immediate increase of Rs 2 per kilogram in the price of Compressed Natural Gas (CNG) across Mumbai and surrounding areas. This adjustment raises the price from Rs 75 to Rs 77 per kilogram.

The company cites rising input costs, particularly in the procurement of natural gas and operational expenses, as the reason for this price hike. MGL previously raised its CNG prices in July 2024 by Rs 1.50 per kilogram, which brought the price to Rs 75.

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This latest increase aligns with a trend among city gas distribution companies in India, which are adjusting their prices to manage escalating costs. For instance, Indraprastha Gas Limited (IGL) raised CNG prices in Delhi by Rs 1 per kilogram in June 2024, resulting in a new price of Rs 75.09.

Despite this increase, CNG remains a cost-effective and environmentally friendly alternative to traditional fuels. MGL is committed to providing reliable and sustainable energy solutions to its customers in the region.

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In response to the announcement, shares of Mahanagar Gas Ltd. saw a rise of up to 4 per cent on Friday, November 22. The hike in CNG prices reflects the company's efforts to offset rising costs. MGL last raised prices in July due to a drop in domestic gas allocations to city gas firms.

Currently, MGL's price increase equates to a 2.6 per cent rise. Analysts suggest that city gas distribution companies might need to implement price hikes of 8-10 per cent to fully account for the rising costs. Recently, shares of both Mahanagar Gas and Indraprastha Gas were downgraded by analysts following a government decision to cut its APM gas allocation to these companies by an additional 20 per cent.

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