Overview
- MGL announced on Monday that it has discontinued all support schemes and subsidies for commercial piped natural gas (PNG) and compressed natural gas (CNG) customers with immediate effect.
- The company told customers it has withdrawn specific measures that helped businesses, including downstream piping cost absorption and monthly bill subsidies for self‑funded installations.
- MGL said the move was driven by the ongoing geopolitical situation that has increased procurement costs through higher global gas and crude prices, rupee depreciation and supply disruptions.
- The change will raise operating costs for firms that rely on PNG and CNG — such as transport operators, hotels, restaurants and small manufacturers — and those costs could be passed on to end users.
- Markets reacted modestly to the announcement, with MGL shares rising about 2 percent and oil marketing stocks also gaining as analysts note the step follows recent fuel‑price volatility and earlier CNG price increases.