Mahanagar Gas User Pay Attention! Subsidies Stopped Amid West Asia Crisis | Check Ceased Benefits

Mahanagar Gas: All support schemes and subsidies for existing customers of Mahanagar Gas Limited (MGL) have been halted amid global energy concerns arising from the West Asia crisis, the city gas distributor announced on Monday, May 25.

"Due to the ongoing geopolitical situation and its impact, MGL has been constrained to discontinue all support schemes and subsidies with immediate effect," stated MGL in a social media post on X. The city gas distribution company also expressed its regret to the affected customers.

Key Mahanagar Gas Subsidies That Are Stopped

The company has announced to stop all of its support schemes and subsidies for its customers. The move will impact the operation of different schemes including downstream piping cost absorption and monthly bill subsidies for self-funded installations.

"Due to the ongoing geopolitical situation, we would like to inform that MGL is constrained to stop all its support schemes and subsidies being given under different schemes with immediate effect, which includes the downstream piping cost absorption and monthly bill subsidies for self-funded installations," as per the Mahanagar Gas Limited statement.

The recent announcement by Mahanagar Gas Limited to stop subsidies on CNG came as Iran-US peace talks uncertainty and Strait of Hormuz closure affected global energy supply.

CNG Price Hike Amid West Asia Crisis

Earlier on May 14, Mahanagar Gas Limited announced to increase CNG price in Mumbai and other cities in Maharashtra. MGL raised CNG prices by Rs 2 per kg across Mumbai Metropolitan Region. These included higher gas procurement costs, rising crude benchmarks, a weaker rupee, and disruptions in global energy supplies tied to tensions in West Asia, which together strained the company's margins.

The wider conflict in West Asia has escalated since the US and Israel attacked Iran, triggering retaliatory strikes and the closure of the Strait of Hormuz. Around one-fifth of worldwide oil shipments normally move through this channel, so the disruption has fed into crude price rises that are now affecting Indian city gas distributors, including Mahanagar Gas Ltd.

Petrol, Diesel Price Hike For Fourth Time In 2 Weeks

In a separate development, petrol, diesel prices have been increased for the fourth time in less than two weeks. Petrol and diesel prices surged on Monday, after seeing sharp jump over the past few days.

After Monday's price hike, petrol prices in Delhi crossed the Rs 100-mark, rising by Rs 2.61 to Rs 102.12 per litre, while diesel prices increased by Rs 2.71 to Rs 95.20 per litre.

CNG Price Hike

Compressed Natural Gas (CNG) prices in Delhi were increased on Saturday, May 23. CNG prices in Delhi were increased by Re 1 per kg. Saturday's surge marked the third price hike in CNG rates in 10 days. CNG now costs Rs 81.09 per kg in the national capital, further adding to the financial burden on daily commuters and transport operators.