Mumbai households are set to experience increased cooking gas expenses following an announcement by Mahanagar Gas Ltd. (MGL). The state-owned city gas distributor has raised the price of domestic piped natural gas (PNG) by 50 paise per unit, bringing the new rate to ₹52, effective May 30.
This revision comes amid a challenging environment marked by rising gas procurement costs and a reduced supply of more affordable domestic natural gas. MGL has also implemented a price hike for compressed natural gas (CNG), increasing it by ₹2 per kilogram to ₹86 across Mumbai, Thane, Navi Mumbai, and surrounding areas. This marks the second CNG price increase by MGL this month, with a similar ₹2 hike announced on May 14.
Reasons Behind the Price Adjustments
City gas distributors, including MGL, are facing significant pressure from escalating input costs. A key factor is the lower allocation of domestically produced natural gas, forcing companies to source a larger portion of their requirements from more expensive international markets. The depreciation of the Indian rupee against major currencies has further exacerbated these procurement expenses.
The energy sector is also grappling with heightened volatility in global markets. Geopolitical tensions, particularly in West Asia, have kept crude oil and natural gas prices elevated. Concerns over potential disruptions to energy supplies through critical routes like the Strait of Hormuz continue to contribute to market uncertainty, despite ongoing diplomatic efforts.
Broader Impact on Fuel Prices
The ripple effect of these global and domestic pressures is evident across India's retail fuel market. Petrol and diesel prices in Mumbai have seen upward adjustments recently, reflecting the pass-through of higher global crude oil costs to consumers. As of May 30, petrol in Mumbai retailed at ₹111.21 per litre, while diesel was priced at ₹97.83 per litre.
New Rules for LPG to PNG Conversion
In a related development, the government has introduced amendments to the Liquefied Petroleum Gas (Regulation of Supply and Distribution) Order, 2026, offering greater flexibility to domestic LPG consumers transitioning to PNG. Under the updated rules, consumers obtaining a PNG connection now have the option to either surrender their LPG connection within 30 days or opt for a transfer voucher. This voucher allows them to reactivate their LPG connection later if they relocate to an area without PNG services.
The Ministry of Petroleum and Natural Gas stated that this provision aims to provide significant relief to transferable employees, migrant families, tenants, students, and other households that frequently change residences. Previously, households with PNG connections were mandated to surrender their subsidized domestic LPG connections. To streamline this process, the ministry has also launched the MyPNG-D Portal, enabling consumers to manage LPG connection surrenders and PNG transitions online without needing to visit service centers.