Mumbai: CNG prices have gone up once again across the Mumbai Metropolitan Region, with Mahanagar Gas Limited (MGL) increasing the price by ₹1 per kg from October 1. With this hike, CNG supplied by MGL now costs ₹89 per kg.
What makes this increase significant is that it is the fifth CNG price hike since April. In just a few months, the price of CNG has increased by ₹8 per kg, adding to the fuel expenses of lakhs of vehicle owners and public transport operators across the MMR.
MGL has linked the latest increase to the rise in its input gas costs. According to the company, prices of both domestically produced gas and imported Regasified Liquefied Natural Gas, or RLNG, have increased amid the ongoing West Asia crisis.
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MGL has also said that a larger share of the rising CNG demand is being met through spot RLNG. Since the prices of spot RLNG have also gone up, the company is having to procure gas at a higher cost.
The company said the latest price revision will partially offset the increase in input gas costs and help maintain a sustained supply of natural gas to its customers. At the same time, MGL said it will continue to explore ways to optimise gas procurement and manage its costs.
However, while MGL is looking at ways to optimise its procurement costs, the repeated hikes are already becoming a concern for those who depend on CNG for their daily earnings.
Nearly 12.93 lakh vehicles across the MMR use MGL-supplied CNG. This includes autorickshaws, taxis, private vehicles and vehicles operated by transport authorities.
The latest hike also comes just a month after CNG prices were increased by ₹2 per kg in September, taking the price from ₹86 to ₹88 per kg. The September hike itself was attributed to rising input costs.
For auto and taxi drivers, the repeated increase means higher daily running costs. Auto and taxi unions have already raised concerns that the continuous rise in CNG prices is affecting their earnings. The latest increase comes soon after Mumbai’s auto and taxi fares were revised, with the minimum auto fare going up to ₹27 and the taxi base fare to ₹33.
With CNG now at ₹89 per kg and this being the fifth hike in just a few months, the bigger question for Mumbai commuters is — if fuel costs continue to rise, could it eventually lead to another increase in auto-rickshaw and taxi fares across the city?