Mahanagar Gas withdraws support schemes, subsidies for commercial users amid West Asia conflict

City gas distributor Mahanagar Gas Limited on Monday said it has withdrawn all support schemes and subsidies for its commercial customers with immediate effect, citing the ongoing geopolitical situation.

In an announcement issued to commercial customers, the company said it was “constrained to stop all its support schemes and subsidies being given under different schemes”.

The withdrawn benefits include downstream piping cost absorption and monthly bill subsidies for self-funded installations, it said.

“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,” the company said in the notice. “We regret the inconvenience that may have been caused to our customers.”

The announcement comes amid rising concerns in the energy sector over volatility in global gas supplies due to the ongoing West Asia conflict that has disrupted the traffic through Strait of Hormuz.

Meanwhile, Indraprastha Gas Ltd (IGL), another city gas distributor, increased CNG prices in the national capital by ₹2 per kg, marking the fourth increase in less than two weeks.

With the latest revision, compressed natural gas (CNG) in Delhi will now cost ₹83.09 per kg, according to Indraprastha Gas Ltd (IGL).

The latest hike follows earlier increases of ₹2 per kg on May 15, Re 1 per kg on May 17 and Re 1 per kg on May 23, taking the cumulative increase to ₹6 per kg since May 15.

IGL had earlier said the revision in CNG prices was aimed at “marginally offsetting” the impact of higher input gas costs and the steep appreciation of the US dollar.

“Even after revision, CNG would still offer upto 45% savings towards the running cost when compared to vehicles running on alternate fuel at the current level of prices,” the company had said on May 23.