Mahanagar Gas Limited (MGL) raised compressed natural gas (CNG) prices by ₹2 per kg across the Mumbai Metropolitan Region (MMR) on 14 May 2025, pushing the retail rate to ₹84 per kg with immediate effect. The state-run gas distributor cited rising input costs and prevailing market conditions as the drivers behind the revision.

New Rates and Coverage

CNG will now cost ₹84 per kg across Mumbai, Thane, Navi Mumbai, and other parts of the MMR, up from the previous rate of ₹82 per kg. The hike applies to all retail dispensing outlets operated under the MGL network and takes effect immediately across the region.

Auto-Rickshaw Unions Push for Fare Relief

Shortly after the price revision was announced, auto-rickshaw unions reportedly demanded a corresponding increase in passenger fares, arguing that successive fuel price hikes have steadily eroded drivers' take-home earnings. Union representatives have sought at least a Re 1 increase in the base auto-rickshaw fare and urged the relevant authorities to act without delay.

According to union statements, the sustained rise in operating costs has made it increasingly difficult for drivers to sustain livelihoods under the existing fare structure. This comes amid a broader pattern of CNG price volatility that has triggered similar fare demands in earlier cycles across Indian cities.

Impact on Daily Commuters

The MMR is heavily dependent on CNG-powered public transport, with auto-rickshaws, taxis, and city buses collectively running on the fuel. The latest revision is expected to translate into upward pressure on fares, directly affecting millions of daily commuters. Notably, this is not the first such hike in recent months — each previous revision has reignited the fare-revision debate between transport unions and state regulators.

MGL Financial Snapshot

Shares of Mahanagar Gas Limited traded nearly 3% higher in morning trade on Thursday, touching an intraday high of ₹1,072 on the Bombay Stock Exchange (BSE). The stock's 52-week high stands at ₹1,586 and its 52-week low at ₹902. For the fourth quarter of FY26, MGL reported a net profit of ₹130 crore on revenue of ₹2,052 crore.

Separately, the government has stated that the country holds adequate stocks of petroleum products and that LPG supplies for domestic cooking remain stable — though the CNG hike signals continued cost pressures in the city gas distribution segment.

With auto unions pressing regulators and commuters bracing for possible fare increases, the next move by Maharashtra's transport authorities will be closely watched.