Shares of Mahanagar Gas Ltd. declined as much as 5% on Wednesday, April 9, following an increase in the price of compressed natural gas (CNG) in the Mumbai Metropolitan Region (MMR).The city gas distributor has increased the CNG price by ₹1.50 to ₹79.50 per kg. Similarly, the price of piped natural gas (PNG), used for cooking, will go up by ₹1 per unit, bringing the new rate to ₹49 per kg.
MGL last increased the CNG price in December 2024, when it was hiked by ₹1. Earlier to that, in November 2024, the price was increased by ₹2 per kg.
Indraprastha Gas Ltd. (IGL) on Monday also announced a price hike for CNG by ₹1-3 per kilogram. In Delhi, the price has been raised by ₹1 per kg, while in other markets, the hike is ₹3 per kg.
This marks the first CNG price increase in the Delhi market since June 2024. Delhi accounts for 70% of IGL’s total CNG sales, with the remaining 30% coming from other markets.Following the revision, CNG is now priced at ₹76.09 per kg in Delhi, and ₹84.70 per kg in Noida and Ghaziabad.On April 1, the government hiked the price of natural gas derived from old legacy fields, known as the Administered Price Mechanism (APM), by 4%, or by $0.25 per million metric British thermal units (mmBtu).This gas, primarily produced by state-owned Oil and Natural Gas Corporation (ONGC) and Oil India Ltd, is crucial for supplying piped cooking gas to households and manufacturing CNG for vehicles.The APM gas is sold cheaper to city gas distribution players in India to ensure essential services such as domestic PNG and CNG. The APM gas price has been raised to $6.75 per mmBtu from $6.50.
