CNG and PNG hikes raise operating-cost pressure for Delhi and Mumbai food businesses
MGL and IGL have raised gas prices, lifting costs for restaurants, food retailers and other gas-dependent businesses. Delhi CNG is ₹86.98/kg, while Mumbai CNG is ₹88/kg and domestic PNG is ₹51.50/SCM.
What happened
Mahanagar Gas Ltd · MGL and IGL raised CNG and PNG prices in Mumbai and Delhi amid higher LNG costs and West Asia supply disruption. Commercial LPG rates remain
Key facts
- Mumbai CNG: ₹88/kg, up ₹2/kg
- Mumbai domestic PNG: up ₹1/SCM to ₹51.50/SCM
- Delhi CNG: ₹86.98/kg, up ₹3.89/kg
- Delhi CNG increase in 2026: nearly ₹10/kg from ₹77.09/kg
- Delhi domestic LPG 14.2kg cylinder: ₹942
- Delhi commercial LPG 19kg cylinder: ₹2,747.50
- PNG connection incentive scheme effective September 1, 2026
Why this matters
For restaurant and food-service targets in Delhi and Mumbai, diligence should stress-test EBITDA against sustained higher CNG/PNG rates and assess pricing power, energy efficiency and fleet-fuel dependence.
What to watch
- Further MGL or IGL CNG/PNG price revisions and changes in domestic gas allocation or administered gas pricing.
- Monthly same-store sales, guest counts, average ticket and delivery-order conversion after menu changes.
- Food-cost inflation in vegetables, edible oils, dairy, LPG and key packaged inputs.
- Restaurant wage inflation, rental escalations and food-delivery platform commission or advertising costs.
- Competitor pricing actions among quick-service restaurants, cloud kitchens, caterers and food courts.
- Audit gas consumption and cost per meal by outlet, format and menu category.
- Prioritize price increases on gas-intensive products with relatively inelastic demand, while protecting entry-price/value meals.
- Renegotiate commercial PNG terms where possible and evaluate kitchen-efficiency upgrades such as burners, insulation and batch-cooking processes.
- Reduce waste and simplify low-volume, high-preparation menu items to protect contribution margins.
- Prepare customer messaging and loyalty offers to limit traffic losses after any price revision.