Mahanagar Gas Limited (MGL) on Monday announced the immediate discontinuation of all support schemes and subsidies for its commercial customers, citing the impact of the “ongoing geopolitical situation” on the energy sector. The move includes the withdrawal of downstream piping cost absorption and monthly bill subsidies for customers opting for self-funded installations.
The move comes at a time when businesses across India are already grappling with rising fuel prices, volatility in global gas markets and concerns over the affordability of cleaner cooking fuels such as piped natural gas (PNG) and liquefied petroleum gas (LPG).
In a statement shared on X, the Mumbai-based city gas distributor said it had been “constrained” to withdraw the support measures due to external pressures affecting the energy market. The company added that it regretted the inconvenience caused to commercial consumers but remained committed to supplying safe and reliable PNG and CNG services across its operational areas.
Due to the ongoing geopolitical situation and its impact, MGL has been constrained to discontinue all support schemes and subsidies for commercial customers with immediate effect.
We understand how this may affect the commercial customers, and we sincerely regret any… pic.twitter.com/uojUiwUrZt
— Mahanagar Gas Ltd. (@mahanagargas) May 25, 2026
MGL’s recent hike in CNG prices
The announcement came just days after MGL increased CNG prices by Rs 2 per kg across the Mumbai Metropolitan Region, raising the rate to Rs 84 per kg effective May 14. The company had attributed the hike to rising gas procurement expenses, higher crude oil prices, rupee depreciation and disruptions in global energy supplies amid escalating tensions in West Asia.
Commercial LPG cylinder rates have seen frequent revisions in recent months due to global crude oil movements and supply constraints. This has pushed many businesses to rely more heavily on PNG connections as a comparatively economical alternative.
Which businesses are likely to be impacted?
The decision is likely to impact a wide range of commercial establishments including restaurants, hotels, small manufacturing units, roadside eateries and catering businesses that depend on PNG for daily operations.
Many such businesses had shifted from LPG cylinders to piped natural gas over the past decade due to convenience, relatively stable pricing and government encouragement for cleaner fuels.
MGL is one of India’s leading city gas distribution companies and supplies PNG and CNG across Mumbai and adjoining regions. The company serves residential, commercial and industrial customers while also operating a large network of CNG stations catering to public and private transport.