The price of Compressed Natural Gas (CNG) in Mumbai has been increased by Rs 2 per kilogram, effective from today. With this revision, CNG now costs Rs 86 per kg in the financial capital, up from the previous rate of Rs 84 per kg. The hike has been implemented by Mahanagar Gas Limited (MGL), which supplies CNG and Piped Natural Gas (PNG) in Mumbai and its surrounding areas.
PNG Rates Also Increased
Along with CNG, the price of PNG for domestic consumers has also been hiked. The new PNG rate stands at Rs 53 per standard cubic meter (scm), up by Rs 1.50 per scm from the earlier price of Rs 51.50 per scm. This increase will impact households using PNG for cooking and heating purposes.
Reason Behind the Price Hike
MGL attributed the price revision to an increase in the input cost of natural gas. The company stated that the hike is necessary to offset the rising expenses incurred in sourcing and supplying natural gas. The price adjustment comes amid global volatility in energy prices, which has led to higher costs for gas distribution companies.
Impact on Commuters and Households
The CNG price hike is expected to directly affect auto-rickshaw and taxi fares in Mumbai, as these vehicles primarily run on CNG. Commuters may experience a slight increase in travel costs, though the exact impact on fares will depend on subsequent decisions by transport authorities. For households, the PNG price hike will lead to higher monthly cooking gas bills.
This is the second price revision in recent months. In April, CNG prices were reduced by Rs 1.50 per kg, providing some relief to consumers. However, the latest increase reverses that reduction and adds an additional burden.
Comparison with Other Cities
Mumbai's CNG price remains among the highest in the country. In Delhi, CNG is priced at Rs 75.09 per kg, while in Pune it is Rs 79 per kg. The higher prices in Mumbai are attributed to higher taxes and transportation costs.
Consumer Reaction
Consumer groups have expressed disappointment over the price hike, urging the government to intervene and stabilize fuel prices. They argue that frequent fluctuations in CNG and PNG prices create uncertainty for households and small businesses.
MGL has assured that it will continue to monitor the situation and adjust prices as per market conditions. The company also emphasized its commitment to providing reliable and safe gas supply to its customers.
