As per The CNBCTV18 news report, Mahanagar Gas Ltd. has announced the immediate cessation of all customer support schemes and subsidies.
This decision comes amid the escalating energy crisis linked to the geopolitical tensions affecting global oil supply routes.
On May 25, 2026, Mahanagar Gas Ltd. made a significant announcement halting all its subsidy schemes.
This decision includes the withdrawal of downstream piping cost absorption and monthly bill subsidies for self-funded installations, immediately effective across its customer base.
The company's announcement on social media platform X underscored the necessity of the decision due to the intensifying geopolitical situation and its adverse impact on global energy supplies.
The move to suspend subsidies follows a recent ₹2 per kg increase in CNG prices in the Mumbai Metropolitan Region, bringing the rate to ₹84 per kg since May 14, 2026.
This decision was enforced amid rising crude costs, higher gas procurement expenses, and the depreciation of the rupee, all exacerbated by ongoing tensions in West Asia.
The energy crisis is underpinned by the hostile environment in West Asia, with the US and Israel’s military actions against Iran.
These actions have intensified and resulted in the closure of the Strait of Hormuz, affecting the transit of nearly 20% of global oil shipments.
Read More: India’s LPG Sales Falls 13% in April 2026 as Hormuz Closure Cuts Supply!
As of May 25, 2026, at 2:35 PM, Mahanagar Gas share price on NSE was trading at ₹1,077.50 up by 2.15% from the previous closing price.
Mahanagar Gas's decision to discontinue all subsidies aligns with a challenging global landscape driven by geopolitical tensions in West Asia. This step, together with a rise in CNG prices, highlights the broader impact of the ongoing energy crisis on Indian markets and consumers.
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Published on: May 25, 2026, 2:57 PM IST
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