Mahanagar Gas halts all subsidies amid energy crisis

Gas distributor Mahanagar Gas Ltd. has said it is stopping all support schemes and subsidies for customers with immediate effect as the war in West Asia continues to deepen the energy crisis in India and across the world.

The company announced the move on X on Monday, May 25.

#MGLUpdate Due to the ongoing geopolitical situation and its impact, MGL has been constrained to discontinue all support schemes and subsidies with immediate effect. We understand how this may affect the customers, and we sincerely

regret any inconvenience caused. MGL remains… pic.twitter.com/KIFzVolyNf

— Mahanagar Gas Ltd. (@mahanagargas) May 25, 2026

It includes withdrawal of downstream piping cost absorption and monthly bill subsidies for self-funded installations.

The company said it regrets the inconvenience to customers as it tightens its purse strings, as crude prices have been rising over the last couple of months since the US and Israel attacked Iran, triggering a wave of retaliatory attacks in West Asia and closure of the Strait of Hormuz. This has affected nearly one-fifth of global oil shipping that transits through the strait.

The company, however, cited only geopolitical tensions as the reason for pausing all subsidies and did not specify the West Asia war.

The announcement came days after MGL raised CNG prices by ₹2 per kg across the Mumbai Metropolitan Region, taking rates to ₹84 per kg from May 14.

At that time, the company had cited higher gas procurement costs, rising crude oil prices, rupee depreciation, and global energy supply disruptions linked to tensions in West Asia.

Shares of the company were last seen trading at ₹1,075.60 apiece on NSE, up 1.97% for the day on Monday, May 25. The stock, however, is down 5.80% for the past month.

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