PNG and CNG Prices Go Up in Mumbai; MGL Share Price Drop 5%

In a move that could impact daily budgets, Mahanagar Gas Limited (MGL) has increased prices of both piped natural gas (PNG) and compressed natural gas (CNG) in the Mumbai Metropolitan Region. This development has also led to a drop in the MGL share price, which fell by over 5% during Wednesday’s trading session.

MGL Hikes Prices for Daily Essentials

The price of CNG, commonly used as fuel for vehicles, has been raised by ₹1.50 per kg. This takes the new rate to ₹79.50 per kg across Mumbai. Meanwhile, PNG, the piped gas used for household cooking, has gone up by ₹1 per unit, now priced at ₹49 per kg.

This is not the first time MGL has revised prices. The last hike came in December 2024, when CNG was increased by ₹1, and a ₹2 hike occurred in November 2024. The Mahanagar Gas Limited price revision reflects the growing cost pressures faced by city gas distributors.

Market Reaction: MGL Share Price Slides

The hike did not go unnoticed by the stock market. MGL share price took a hit following the announcement, sliding as much as 5.11% on April 9 to ₹1,244.70. MGL’s market capitalisation stands at ₹12,294 crore, with the MGL share price having touched an all-time high of ₹1,988.00.

Industry-Wide Price Adjustments

MGL isn’t alone in adjusting gas prices. Indraprastha Gas Ltd. (IGL) also raised CNG prices by ₹1-3 per kg earlier this week. In Delhi, the new CNG price is ₹76.09 per kg, while it has touched ₹84.70 per kg in Noida and Ghaziabad. This marks the first price increase in Delhi since June 2024, with the city accounting for 70% of Indraprastha Gas Limited’s total CNG sales.

Government’s Gas Price Update Adds Pressure

Adding to the cost burden, the central government recently increased the price of natural gas from older legacy fields by 4%. This gas, sourced from ONGC and Oil India, is vital for producing PNG and CNG. The price has risen from $6.50 to $6.75 per mmBtu under the Administered Price Mechanism (APM).

What Lies Ahead?

With input costs rising and city gas distributors responding with price hikes, consumers may have to brace for further increases. While the Mahanagar Gas Limited price revision aims to offset higher procurement costs, it remains to be seen how it will impact long-term demand and the MGL share price in the coming weeks.

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