State-owned city gas distributor Mahanagar Gas Ltd. (MGL) has raised the price of piped natural gas (PNG) supplied to households across the Mumbai Metropolitan Region (MMR), citing higher gas sourcing costs and reduced availability of cheaper domestic gas.

Effective May 30, domestic PNG prices have been increased by 50 paise per unit to ₹52. The company has also raised compressed natural gas (CNG) prices by ₹2 per kg to ₹86 across Mumbai, Thane, Navi Mumbai and adjoining areas.

The latest revision comes as city gas distributors face rising input costs due to lower allocations of domestically produced natural gas. MGL said it has been forced to procure a larger portion of its gas requirements from costlier sources, while the depreciation of the rupee has further increased procurement expenses.

The increase in PNG prices will impact household consumers who use piped gas for cooking and other domestic purposes. While the rise is relatively modest, it reflects the broader cost pressures being experienced across the energy sector.

At the same time, CNG users will face a higher fuel bill following the ₹2 per kg increase. This is the second hike in CNG prices by MGL this month after a similar ₹2 per kg increase announced on May 14.

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According to the company, it continues to evaluate measures to improve operational efficiencies and manage costs while supporting the adoption of natural gas as a cleaner fuel for homes and transportation.

The revision comes amid heightened volatility in global energy markets. Geopolitical tensions in West Asia have kept crude oil and natural gas prices elevated, with concerns over potential disruptions to energy supplies through the Strait of Hormuz, one of the world's most important energy transit routes.

Although reports suggest progress in diplomatic efforts between the United States and Iran, military activity in the region has continued, creating uncertainty around global energy supplies. Analysts say constrained energy flows and shipping disruptions have added to price pressures across fuel markets.

The broader impact is also being felt in India's retail fuel market. Petrol and diesel prices have seen upward revisions in recent weeks as higher global crude oil prices are gradually passed on to consumers. In Mumbai, petrol currently retails at ₹111.21 per litre, while diesel is priced at ₹97.83 per litre.

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LPG to PNG conversion

The government has notified the Liquefied Petroleum Gas (Regulation of Supply and Distribution) Amendment Order, 2026, providing greater flexibility to domestic LPG consumers who switch to piped natural gas (PNG).

Under the new rules, consumers who obtain a PNG connection can either surrender their LPG connection within 30 days or opt for a transfer voucher, enabling them to restore the LPG connection later if they move to an area where PNG services are unavailable.

The Ministry of Petroleum and Natural Gas said the amendment offers significant relief to consumers who may relocate to regions without PNG infrastructure. The provision is expected to benefit transferable employees, migrant families, tenants, students, and households that frequently change residences.

Earlier, the government had barred households with PNG connections from retaining subsidised domestic LPG connections and mandated surrender of LPG connections after switching to PNG.

To simplify the transition, the ministry also launched the MyPNG-D Portal, allowing consumers to surrender LPG connections online and shift to PNG without visiting service centres.

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Published on: May 30, 2026 9:55 AM IST