Compressed Natural Gas (CNG) prices in Mumbai and the Mumbai Metropolitan Region (MMR) have risen by Rs 1.50 per kg, marking the eighth increase in the past 11 months. The new price, effective from Sunday, stands at Rs 91.50 per kg, adding to the financial strain on autorickshaw and taxi drivers, app-based cab operators, and private vehicle owners.
The latest hike follows a similar adjustment in Pune and comes amid growing concerns over rising fuel costs. Since January, CNG prices have climbed by Rs 11 per kg, a 14% increase, with Mahanagar Gas Ltd (MGL) implementing eight price revisions this year.
Vehicle owners and commercial drivers are particularly affected, facing higher operating expenses. A consumer expressed frustration over the repeated price hikes, stating that essential expenses should not rise during a time of increasing inflation and living costs. The consumer also highlighted the need for stable or reduced CNG prices given the reliance on gas for transportation.
MGL attributed the price increase to higher procurement costs due to the Middle East crisis, reduced domestic gas allocation, and greater dependence on expensive imported gas. The company noted that the rising share of imported re-gasified liquefied natural gas (RLNG), linked to international market prices, has pressured CNG procurement costs. Strong demand for CNG has also contributed to the price hike.
MGL stated that the latest revision helps pass on some of the higher gas procurement costs to consumers while ensuring a stable CNG supply. The company is exploring cost-reduction options to benefit customers and reaffirmed its commitment to promoting natural gas as a cleaner fuel alternative.