Mumbai: Compressed Natural Gas (CNG) will become costlier across the Mumbai Metropolitan Region (MMR) starting Saturday, as Mahanagar Gas Ltd (MGL) has increased the retail price by Rs 2 per kilogram. Additionally, the rate of piped cooking gas has been raised by 50 paise per unit.
Revised CNG and Piped Gas Rates
With the fresh revision, the CNG rate has risen from Rs 84 per kg to Rs 86 per kg in Mumbai, Thane, Navi Mumbai, and other parts of the MMR. This increase directly impacts a large segment of daily commuters, as autorickshaws, taxis, and buses continue to rely heavily on this fuel. The price of piped natural gas has been adjusted to Rs 52 per unit, affecting more than 31 lakh households across the region.
Impact on Auto and Taxi Fares
Thampy Kurien, leader of the Mumbai Rickshawmen's Union, stated that the increase in gas prices has triggered fresh calculations under the fare hike formula. "The formula, which accounts for rising fuel rates, indicates a need for a fare hike of approximately Rs 1.12 per km on the base fare, which is rounded off to a one-rupee increase," he said on Friday. The fare hike proposal will be submitted by the transport department to the Mumbai Metropolitan Region Transport Authority (MMRTA), which has the final say on any auto-taxi fare revision. Taxi unions have also demanded a minimum fare hike of Rs 2 to Rs 3 on the base fare, citing the rising cost of CNG over the past year.
Reasons Behind the Price Hike
An MGL official explained that this is the second CNG price hike this month, following a Rs 2 increase on May 13. There was also a rupee hike in CNG in April. "Due to geopolitical disruptions affecting the global energy supply chain, coupled with increased dependence on expensive gas sources, rising crude oil prices, and rupee depreciation, overall gas procurement costs have risen significantly. This has resulted in the two-rupee CNG hike and a 50-paise increase in piped natural gas rates across MMR," the official said.
Savings Compared to Alternative Fuels
The official further noted: "Despite the price adjustment, CNG continues to offer significant savings compared to alternative fuels. At the revised price, CNG provides approximately 45% savings compared to petrol and 12% savings compared to diesel, based on current fuel prices in Mumbai."
Growing CNG Vehicle Population
Over the past year, the CNG vehicle population in the Mumbai region has increased by around two lakh vehicles, marking a 20% rise and bringing the total to over 12 lakh. Vehicle registration data highlights the heavy dependence on CNG in public transport and last-mile connectivity. The CNG fleet in MMR includes approximately 4.7 lakh autorickshaws, over 1.6 lakh taxis, and more than five lakh private cars spread across Mumbai, Thane, Mira-Bhayander, Navi Mumbai, and Raigad.
Mass Transport and Commercial Vehicles
In the mass transport sector, MGL supplies CNG to 1,969 buses operated by BEST, TMT, MSRTC, and NMMT. It also fuels 51,311 private buses and tempos running on CNG, underscoring the fuel's central role in keeping the region's transport system operational.
