Mahanagar Gas Limited has increased compressed natural gas prices across the Mumbai Metropolitan Region by Rs 2 per kg, taking the revised retail price to Rs 84 per kg from May 14.
The revised CNG price is applicable in Mumbai, Thane, Navi Mumbai and nearby MMR areas. CNG was earlier priced at Rs 82 per kg.
Mahanagar Gas said the price increase was driven by higher gas procurement costs, rising crude oil prices, rupee depreciation and disruptions in global energy supply linked to tensions in West Asia.
“Starting midnight tonight, the price of CNG will increase by Rs 2 per kg, bringing the revised rate to Rs 84 per kg in and around the city,” an MGL official said on Wednesday.
In a statement, the company said geopolitical disruptions affecting the global energy supply chain, increased dependence on expensive gas sources, rising crude oil prices and rupee depreciation have led to a significant rise in gas procurement costs.
The price hike is expected to raise operating costs for public transport operators and private vehicle owners using CNG in the region. According to Mahanagar Gas, around 1.28 million vehicles in the Mumbai Metropolitan Region run on CNG. These include nearly 4.70 lakh autorickshaws, over 1.60 lakh taxis and more than 5 lakh private cars.
Following the hike, autorickshaw unions have sought a revision in fares. The unions have demanded at least a Rs 1 increase in the base fare, stating that repeated fuel price increases are affecting drivers’ earnings.
An auto union leader said the latest hike would raise autorickshaw running costs by about Rs 1.03 per km, pushing the estimated per-kilometre running cost to over Rs 18.3.
Transport officials said discussions on revising autorickshaw and taxi fares could take place soon. The increase is also expected to affect BEST and state transport bus operations.
Mahanagar Gas said that despite the revised price of Rs 84 per kg, CNG continues to remain more economical than petrol and diesel. According to the company, CNG still offers 44% savings compared to petrol and 7% savings over diesel at current market levels.