Mumbai Sees Rs 2/kg Rise in CNG Prices Amid Supply Disruptions

Compressed Natural Gas (CNG) prices in Mumbai, Maharashtra, have been raised by ₹2 per kilogram, effective May 20, 2026. This is the second price hike in just 16 days, primarily attributed to escalating gas procurement costs resulting from supply disruptions stemming from the ongoing conflict in West Asia.

As a result of this increase, CNG in Mumbai and surrounding areas is now priced at ₹86 per kilogram. Alongside this, Mahanagar Gas Ltd (MGL), the leading city-gas distributor in the region, has raised domestic piped natural gas (D-PNG) rates by ₹0.5 per standard cubic metre, leading to a new effective price of ₹52 per standard cubic metre for domestic consumers.

MGL issued a statement explaining the price adjustments by citing significant rising costs due to several factors, including reduced allocation of domestic gas, reliance on more expensive gas sources, and the depreciation of the Indian Rupee. The company has also expressed its commitment to exploring options to optimise costs and to continue promoting natural gas as a cleaner fuel alternative.

This latest increase marks a ₹4 per kilogram rise since May 14, 2026, the date of the first hike initiated by MGL. On May 25, 2026, the company announced the discontinuation of support schemes and subsidies for its commercial customers, a move influenced by pressures from the ongoing West Asian crisis.

The trend of rising CNG prices is not isolated to Mumbai. Indraprastha Gas Limited, the primary city-gas distributor in North India, has also implemented a price increase of ₹6 per kilogram across four increments, reflecting similar supply chain pressures. Other city-gas distributors across India are also adjusting their pricing strategies in response to these market conditions.

The constant fluctuations in CNG prices signal an ongoing impact on consumers and businesses, as supply stability remains uncertain in the wake of geopolitical tensions.