State-owned CNG price in Mumbai and other several cities of India have been increased by Rs 2 per kilogram since the city gas distributors at the local level increased their price.  Delhi will, however, be exempted from it because state elections are close.  

Mahanagar Gas Ltd, the major city gas distributor in the metropolis, has increased CNG rates from Rs 75 to Rs 77 per kilogram from November 22, 2024. This decision is taken after completing the assembly elections in the state of Maharashtra. 

Despite a 20% rise in input costs over the past two months, MGL, along with other city gas distributors such as Adani Total Gas Ltd, had delayed raising prices until now. The price hike cuts across Mumbai and its suburb areas. 

IGL, which supplies to the capital and other cities around, had also increased the rate by Rs 2 a kilogram during the weekend. For November 23, CNG prices in Noida, Greater Noida, Ghaziabad, and Gurugram stood at Rs 81.70, Rs 81.70, and Rs 82.12 per kilogram. 

Despite these increases, Delhi’s price remains unchanged at Rs 75.09 per kilogram, likely due to the proximity of the upcoming elections. 

The recent price hikes come amid concerns over the growing cost of natural gas. Supplies from domestic fields, such as ONGC’s APM gas, have failed to meet the rising demand for CNG, forcing city gas companies to procure costlier non-APM gas or imported LNG. This shift in sourcing has led to the higher costs reflected in the price increase. Additionally, variations in state-level taxes, such as VAT, contribute to differing CNG prices across regions. 

The decision to withhold the price rise in Delhi during the election period is consistent with past practices. For instance, in 2022, IGL kept CNG rates unchanged in Delhi while adjusting prices in Uttar Pradesh, which was also heading into elections. 

As the situation evolves, industry observers will continue to monitor how these pricing decisions impact consumers and the broader natural gas market in India.