Mahanagar Gas Limited has announced the withdrawal of all customer support schemes and subsidies with immediate effect, citing deepening geopolitical tensions as the energy crisis triggered by the West Asia war continues to squeeze gas distributors across India.

The company announced the move on X on Monday, May 25. The withdrawal covers downstream piping cost absorption and monthly bill subsidies for self-funded installations. MGL said it regrets the inconvenience caused to customers.

The decision comes days after MGL raised CNG prices by ₹2 per kg across the Mumbai Metropolitan Region on May 14, taking rates to ₹84 per kg. At the time, the company had cited higher gas procurement costs, rising crude oil prices, rupee depreciation, and global energy supply disruptions linked to West Asia tensions.

The Iran war, which began on February 28 when the US and Israel launched strikes on Iran, has effectively shut the Strait of Hormuz, through which nearly one-fifth of global oil shipping transits. The closure has sent crude prices sharply higher and disrupted energy supply chains across importing nations including India.

MGL cited only geopolitical tensions in its announcement and did not specifically reference the West Asia war by name.

Shares of Mahanagar Gas were trading at ₹1,075.60 on the NSE on Monday, up 1.97% for the day. The stock remains down 5.80% over the past month.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Please consult a qualified financial advisor before making any investment decisions.

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