After CNG price increase, auto unions demand ₹3 hike in base fare

On Friday, a day before the declaration of assembly poll results, Mahanagar Gas Limited (MGL) hiked the price of CNG from ₹75/kg to ₹77/kg

Mumbai: Auto rickshaw unions wrote to the state transport department on Friday evening seeking a ₹3-hike in the base fare in order to offset the ₹2 per kilogram hike in compressed natural gas (CNG) prices. While the base fare currently stands at ₹23, the unions want it raised to ₹26 so they can absorb the impact of the CNG price hike. They also anticipate a further hike of ₹2-4 per kg in CNG prices and have urged the transport department to raise the per-kilometre fare, which currently stands at ₹15.33.

MGL attributed the hike to a reduction in allocation of domestic gas by around 18% effective November 16, which forced it to source additional natural gas at market prices (Hindustan Times)

Earlier on Friday, a day before the declaration of assembly poll results, Mahanagar Gas Limited (MGL) hiked the price of CNG from ₹75/kg to ₹77/kg. The company attributed the hike to a reduction in allocation of domestic gas by around 18% effective November 16, which forced it to source additional natural gas at market prices.

“MGL is constrained to increase the price of CNG by ₹2 per kg to partially offset the increase in gas cost,” said a statement released by MGL on Friday. The company had last raised CNG prices by ₹1.50 per kg in July 2024, taking the total cost to ₹75 per kg.

“We have already sent our representation to various government authorities regarding the need for a fare hike. As per our calculations, there is a need to increase the base fare by ₹3,” said Thampi Kurien, an auto rickshaw union leader. There are over 400,000 auto rickshaws in the Mumbai metropolitan region, of which 260,000 autos ply in the eastern and western suburbs. The base fare for autos was last hiked in October 2022, from ₹21 to ₹23.

The CNG price hike will severely impact auto drivers’ earnings as they fill at least 2-3 kg CNG in their vehicles everyday, said union representatives. The hike will raise the cost of running an auto to ₹17.08 per kilometre while it is currently a little below ₹16 per kilometre, the union representatives noted.

Given the impact of the CNG price hike on running costs and the anticipation that MGL may further hike prices by ₹2-4 per kg in the coming days, the unions have urged the transport department to raise the per kilometre fare, which currently stands at ₹15.33.

The hike in CNG prices is likely to impact at least 1 million CNG vehicles across the Mumbai metropolitan region, including 500,000 private cars and tourist taxis. MGL claims CNG offers savings of about 49% and 14% compared to petrol and diesel prices.