Motorists in Mumbai will have to pay more for compressed natural gas (CNG) from Sunday, November 1, after Mahanagar Gas Limited (MGL) announced a Re 1 per kg increase in retail prices, taking the revised rate to ₹90 per kg in Mumbai and adjoining areas. This is the sixth increase in price since January.
CNG prices in Mumbai have risen by ₹8 per kg since April, with the latest Re 1 hike taking effect at midnight on October 31. The repeated increases have added to the operating costs of autorickshaw and taxi operators, as well as motorists who rely on CNG-powered vehicles.
This, according to auto and taxi unions, could put pressure on fares if fuel costs continue to rise, even though there has been a recent fare hike in auto and taxi fares.
Mahanagar Gas Limited (MGL) attributed the latest price hike to rising input gas costs, including imported regasified liquefied natural gas (RLNG), which is priced in line with international gas indices.
In a statement, the company said rising international gas prices had increased its gas procurement costs. Following the latest revision, CNG now costs ₹90 per kg in Mumbai and adjoining areas.
{{/usCountry}}In a statement, the company said rising international gas prices had increased its gas procurement costs. Following the latest revision, CNG now costs ₹90 per kg in Mumbai and adjoining areas.
{{/usCountry}}Thampi Kurien, president of an auto-rickshaw union, said the latest increase has added burden on operating costs. "The overall additional burden is around 16 paise, while the earlier calculation was around 66 paise per kilometre," said Kurien. “With the increase in CNG prices, there is an estimated impact of around ₹4 on fares.”
He added that if CNG prices rise further and result in a 25% increase in overall operating costs, the union may seek another fare revision within six months, subject to certain conditions.
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