CNG prices hold at ₹77/kg in Mumbai after gas price hike, but supply disrupted by pipeline damage

As of November 17, 2025, CNG in Mumbai remains priced at ₹77.00 per kilogram — unchanged from the previous period — even as the government’s decision to raise the Administered Price Mechanism (APM) gas price by 4% earlier this year continues to ripple through India’s fuel markets. The Petroleum Planning and Analysis Cell (PPAC), under the Oil Ministry, set the new ceiling at USD 6.75 per million British thermal units (MMBtu) effective April 1, 2025, up from $6.50. This isn’t just a technical adjustment; it’s the latest chapter in a years-long effort to stabilize natural gas pricing after wild swings that saw prices plunge to $1.79 in 2021 and spike to $8.57 just two years ago.

Why the APM hike matters — even if prices didn’t move

The Mahanagar Gas Limited (MGL), Mumbai’s sole city gas distributor, sets CNG and piped natural gas (PNG) prices based on the APM rate. Even though the CNG price hasn’t changed since October, the higher input cost means retailers are operating on thinner margins. If crude oil prices climb further — as they have in recent months — the next adjustment could come sooner than expected. The ceiling will rise again to $7.00 per MMBtu in April 2026, and industry insiders say distributors are already bracing for it.

Here’s the twist: the PPAC had originally calculated a price of $7.26 per MMBtu for April 2025 based on the 10% indexation rule tied to crude oil. But the government capped it at $6.75 to shield consumers. That’s a $0.51 per MMBtu subsidy — a hidden cost borne by the exchequer. It’s not a permanent fix, though. As one MGL executive put it, “We’re not making money on CNG anymore. We’re just keeping the lights on.”

Supply disruption adds fuel to the fire

While prices stayed steady, a major disruption hit Mumbai’s gas network on November 16. A section of the Gas Authority of India Limited (GAIL) Main Supply Pipeline suffered a rupture near the Wadala City Gate Station — the critical entry point for natural gas into the city’s distribution grid. As a result, CNG supplies to Mumbai, Navi Mumbai, and Thane were cut off for over 18 hours, with partial restoration expected only after 48 hours. Thousands of taxi drivers, auto-rickshaw operators, and households relying on PNG were left stranded.

“We had to close our depot for two shifts,” said Rajesh Mehta, a CNG station owner in Andheri. “People were furious. Some were crying. This isn’t the first time, but it’s the longest we’ve gone without gas since 2021.”

Wadala’s infrastructure is aging. Built in the early 2000s, the station was never designed to handle today’s demand — which has grown by 47% since 2020. GAIL has acknowledged the vulnerability, but maintenance budgets have been delayed due to broader infrastructure reallocations. The incident has reignited calls for a dedicated emergency gas reserve and backup pipelines — something the government has so far resisted citing cost concerns.

Price disparities across India reveal a fractured system

Mumbai’s ₹77.00/kg price may seem high, but it’s actually mid-range. In Uttarakhand’s Udham Singh Nagar, CNG hits ₹99.50/kg — the highest in the country. Chennai and Bangalore hover near ₹90/kg, while Ghaziabad and Gurugram offer prices under ₹75. Even within cities, differences exist: Kolkata charges ₹88.50 per litre (not per kg), which converts to roughly ₹80/kg — a reminder that units aren’t standardized across states.

These gaps aren’t accidental. They reflect uneven infrastructure, transportation costs, and local taxes. For example, Delhi’s Indraprastha Gas Limited (IGL) raised CNG prices by ₹1/kg in June 2020 — a move that still echoes in today’s pricing. Meanwhile, Maharashtra’s state government has kept CNG under price control longer than most, but that’s becoming harder to sustain.

What’s next? A system on the edge

The April 2023 policy — which introduced monthly APM revisions with a $4.00–$6.75 price band — was meant to bring predictability. And for a while, it did. But now, with global gas prices climbing, infrastructure crumbling, and demand outpacing supply, the system is straining. City gas distributors are increasingly forced to import LNG at nearly eight times the cost of domestic APM gas, according to industry reports.

Experts warn that without structural reforms — like investing in storage, upgrading pipelines, and decoupling CNG pricing from volatile international markets — consumers will pay more, not just in rupees but in inconvenience. “We’ve traded volatility for fragility,” said Dr. Nandini Rao, an energy policy analyst at the Indian Institute for Sustainable Development. “The price is stable, but the supply isn’t. That’s a dangerous trade-off.”

The government says it’s reviewing pipeline safety protocols and has allocated ₹800 crore for infrastructure upgrades in the 2025–26 budget. But timelines are vague, and no new pipelines are scheduled to be operational before 2027. In the meantime, Mumbai’s CNG users are left waiting — for both fuel and answers.