Mahanagar Gas has recently raised the price of compressed natural gas (CNG) by Rs 2 per kilogram, resulting in a new rate of Rs 77/kg, effective from November 22. This adjustment is aimed at sustaining profit margins in the face of increasing input costs.

The price hike comes after the conclusion of elections in Maharashtra and Jharkhand and follows a reduction in the supply of low-priced natural gas from older fields to city gas distributors, including Mahanagar Gas and Indraprastha Gas Limited (IGL). On November 16, the government announced a 20% reduction in APM gas supplies, which followed a 21% cut made in October.

Despite the increase in CNG prices, Mahanagar Gas shares experienced a rise in early trading on November 22, although they have remained down 4% year-to-date. The reduction in domestic APM gas allocation has raised concerns among city gas distributors regarding its impact on profitability.