Compressed Natural Gas (CNG) and domestic Piped Natural Gas (PNG) prices have increased in Mumbai and surrounding areas from September 1, 2026, after Mahanagar Gas Limited (MGL) announced a revision in its rates.
MGL has increased the price of CNG by ₹2 per kg, taking the revised rate to ₹88 per kg. The company has also raised the price of domestic PNG by ₹1 per standard cubic metre (SCM), with the new rate standing at ₹53 per SCM.
The revised prices came into effect from midnight between August 31 and September 1.
MGL attributed the price increase to a sharp rise in the cost of natural gas linked to international markets amid the ongoing West Asia crisis.
According to the company, international gas prices have risen significantly as the conflict has affected global energy markets. This has increased the cost of gas used by MGL to supply CNG and PNG to consumers.
MGL also pointed to growing demand for CNG as an additional factor. A significant portion of the gas required for its CNG business is sourced through imported spot Regasified Liquefied Natural Gas (RLNG). With international prices climbing, sourcing this gas has become more expensive.
The company said the ₹2-per-kg CNG increase will only partially compensate for the higher input costs.
Following the latest revision, motorists in Mumbai and surrounding areas will now pay ₹88 per kg for CNG, compared with the earlier price of ₹86 per kg.
The increase will affect private car owners as well as autorickshaw drivers, taxi operators and other commercial vehicle users who depend on CNG.
MGL's distribution network serves around 13 lakh CNG vehicles across several areas, including Mumbai, Thane, Raigad, Ratnagiri, Latur and Dharashiv in Maharashtra, along with Chitradurga and Davangere in Karnataka.
For regular CNG users, the impact on monthly fuel expenses will depend on their vehicle's mileage and average distance travelled.
The latest revision also affects households using MGL's domestic PNG connections.
The company has increased the domestic PNG price by ₹1 per SCM, taking the revised rate to ₹53 per SCM.
The increase will affect approximately 30 lakh domestic consumers. Since PNG is widely used for household cooking, the higher rate is expected to add to monthly kitchen fuel expenses.
MGL cited the same rise in input gas costs as the reason for the PNG price revision.
The latest CNG price increase comes at a time when global energy markets are facing heightened uncertainty because of the continuing conflict in West Asia.
MGL said higher international gas prices have increased its procurement costs, particularly for imported spot RLNG. At the same time, rising CNG consumption has required the company to source additional gas to maintain supplies.
The company said the latest price revision is intended to partly absorb these increased costs and support the continued availability of CNG.
MGL has not announced any further increase in CNG or PNG prices.
The company said it is continuing to explore ways to optimise costs and pass on benefits to consumers where possible. However, future prices could remain sensitive to international gas prices, import costs and demand conditions.
The Mumbai price hike also comes shortly after Indraprastha Gas Limited (IGL) raised CNG prices in Delhi-NCR by ₹3.89 per kg to ₹86.98 per kg, citing higher input costs.
For Mumbai motorists and households, the immediate impact is a higher cost of transportation and cooking fuel. The extent of any further increase will largely depend on how international gas prices and input costs move in the coming weeks.