Mumbai CNG Price Hits Rs 86 Per Kg Amid Middle East Crisis

Mumbai's compressed natural gas (CNG) prices have hit Rs 86 per kilogram, marking the second increase in just 15 days. Mahanagar Gas Limited raised CNG prices by Rs 2 per kg and domestic piped natural gas by Rs 1 per standard cubic meter in Mumbai, amidst concerns over global energy supplies triggered by the Middle East crisis.

The price hike is a direct result of the company's pricing formula, which passes on cost changes to consumers. This mechanism has led to repeated adjustments, with CNG prices increasing by Rs 4 per kilogram since May 14. The latest increase takes the cumulative rise to Rs 80 percent more than the Rs 47.90 per kg price in January 2021.

The Middle East crisis has stoked global energy supply fears, leading to a surge in international gas prices. India imports close to half of its natural gas in liquefied form, making it vulnerable to disruptions in Gulf shipping lanes. Mahanagar Gas Limited buys gas at market-linked rates and passes on the costs to consumers.

Auto-rickshaw and taxi unions have demanded a corresponding fare hike, arguing that members cannot absorb another increase in just 15 days. Cab drivers have also protested falling earnings as pump prices climb, with CNG being their single largest daily expense. The price hike is expected to raise operating costs for auto-rickshaws, taxis, and private vehicles running on CNG.