CNG in Mumbai, adjoining areas to cost ₹91.50 per kg after eighth price hike this year

CNG prices in Mumbai were ₹80.50 per kg at the start of the year and went up by ₹11 after cumulative hikes within 11 months.

Compressed Natural Gas(CNG) is set to get costlier by ₹1.50 per kg across the Mumbai Metropolitan Region (MMR) and adjoining areas from November 15, Sunday, following another price hike announced by Mahanagar Gas Limited (MGL) on Saturday.

The successive hikes have steadily increased fuel costs for autorickshaw and taxi operators, as well as private motorists who rely on CNG. (Praful Gangurde/HT Photos)

The latest revision, the eighth increase since January, will take the price to ₹91.50 per kg, up from ₹80.50 at the beginning of the year, marking a cumulative increase of ₹11 per kg in less than 11 months.

The successive hikes have steadily increased fuel costs for autorickshaw and taxi operators, as well as private motorists who rely on CNG. The latest increase comes amid mounting pressure on the gas supply chain, with MGL attributing the revision to rising procurement costs and a greater dependence on imported gas.

“The ongoing Middle East crisis, coupled with reduced domestic gas allocation and increased dependence on higher-cost imported RLNG linked to international benchmarks, has significantly increased MGL’s gas procurement costs, particularly for the CNG segment, driven by strong demand and a higher share of imported gas in its input mix,” MGL said in a statement.

The company said it continues to explore avenues to optimise costs and pass on benefits to consumers, while ensuring the widespread adoption of natural gas as a cleaner fuel alternative.

MGL raised CNG prices eight times this year, taking the rate from ₹80.50 per kg in January to ₹91.50 from November 15, an increase around 14%. The revisions include a 50-paise hike in February, followed by increases of ₹1 in April, ₹2 each in May (twice) and September, ₹1 each in October (twice), and the latest ₹1.50 hike announced on November 14.

The revised rates will come into effect from Sunday.