Mahanagar Gas Limited (MGL) has announced the immediate withdrawal of all support schemes and subsidies for its commercial customers, citing rising pressure from the ongoing geopolitical crisis and volatility in global energy markets.
The Mumbai-based city gas distributor said it was “constrained” to discontinue the benefits due to external factors affecting the energy sector.
In its statement on X, MGL expressed regret over the inconvenience caused to customers but reiterated its commitment to ensuring uninterrupted, safe and reliable supply of PNG and CNG 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."
It further added, "We understand how this may affect commercial customers, and we sincerely regret any inconvenience caused. MGL remains committed to delivering safe & reliable PNG and CNG supply across all our operational areas."
#MGLUpdate
— Mahanagar Gas Ltd. (@mahanagargas) May 25, 2026
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
The decision is expected to impact a wide range of commercial establishments across the Mumbai Metropolitan Region, including restaurants, hotels, catering businesses, roadside eateries, transport operators and small-scale industries that rely heavily on piped natural gas (PNG) and compressed natural gas (CNG) for daily operations.
Among the benefits withdrawn are downstream piping cost absorption and monthly bill subsidies offered to customers who opted for self-funded gas installation systems. Businesses availing themselves of these schemes may now face higher operational expenses amid already elevated energy prices.
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The price revision closely follows MGL's mid-May decision to raise CNG rates across the Mumbai Metropolitan Region.
Defending the Rs 2 per kg increase that took effect on May 14, the company pointed to macroeconomic pressures, specifically citing a depreciating rupee, surging crude oil prices and the rising cost of procuring natural gas.
The company has not indicated whether the withdrawn support schemes could be restored once market conditions stabilise.
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