Mahanagar Gas Suspends All Support Schemes Amid Ongoing Energy Crisis

Mahanagar Gas Ltd (MGL), one of India’s largest city gas distribution companies, has withdrawn all customer support schemes and subsidies with immediate effect, citing mounting pressure from the ongoing global energy crisis linked to geopolitical tensions in West Asia. The announcement was made by the company on Monday, 25 May.

However, the announcement did not draw much attention in the stock market. Mahanagar Gas Limited shares rose 1.91% to close at ₹1,074.90 on the National Stock Exchange.

Customer Subsidy Schemes Withdrawn With Immediate Effect

The subsidy withdrawal impacts all existing customer benefit programmes run by the company. These include downstream piping cost absorption as well as monthly bill subsidies offered for self-funded installations, both of which had been aimed at supporting household and commercial gas users connected to MGL’s piped natural gas network.

The move comes less than two weeks after MGL increased compressed natural gas (CNG) prices by ₹2 per kg across the Mumbai Metropolitan Region. Following the hike announced on 14 May 2026, CNG prices in MGL’s operating areas rose to ₹84 per kg. The company attributed that revision to higher gas procurement costs, rising crude oil benchmarks, rupee depreciation and global supply disruptions.

West Asia Tensions Add Pressure To India’s Gas Supply Chain

The broader energy pressure stems from escalating tensions in West Asia, particularly around Iran and the Strait of Hormuz, a critical global shipping route through which nearly 20% of global oil shipments and a significant share of LNG cargo move. Supply disruptions in the region have sharply increased volatility in crude and gas markets, with India among the countries facing the ripple effects through higher import costs and tighter fuel availability.

Recent industry reports show the city gas sector is already under pressure from rising LNG import prices and softer industrial demand. Some estimates have even pointed to an 8–10% drop in industrial gas sales volumes due to ongoing concerns.

Also Read - SEBI Proposes Dynamic Options Strike Price Framework To Manage Volatile Market Sessions

Source:

CNBC TV18