Compressed Natural Gas (CNG) has become costlier across the Mumbai Metropolitan Region (MMR) from Saturday, with Mahanagar Gas Ltd (MGL) increasing the retail price by Rs 2 per kg. The company has also raised the rate of piped cooking gas by 50 paise per unit, impacting millions of households and public transport users in the region.
The latest revision takes the CNG price from Rs 84 per kg to Rs 86 per kg in Mumbai, Thane, Navi Mumbai and other parts of MMR, affecting a large section of daily commuters as auto-rickshaws, taxis and buses continue to rely heavily on the fuel. The rate of piped natural gas (PNG) has been revised to Rs 52 per unit, affecting more than 31 lakh households.
Also read: CNG Prices hiked again by Rs 2/kg in Delhi
The increase comes amid rising gas procurement costs. According to a report by The Times of India on Friday, an MGL official said, “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 hike in piped natural gas rate across MMR.”
Auto and taxi fare hike demand gains momentum
The latest increase is expected to intensify demands for higher auto-rickshaw and taxi fares.
Mumbai Rickshawmen’s Union leader Thampy Kurien told ToI on Friday that the rise in fuel costs has triggered fresh calculations under the fare revision formula.
“The formula, which takes into account the rising fuel rates, has shown that there is a need for a fare hike of around Rs 1.12 per km on base fare, which is rounded off to a rupee fare hike,” he said.
According to the report, the fare hike proposal is expected to be sent by the transport department to the Mumbai Metropolitan Region Transport Authority (MMRTA), which takes the final decision on auto and taxi fare revisions. Taxi unions have also sought a minimum Rs 2-3 increase in base fares, citing the rise in CNG prices over the past year.
Second CNG price hike in May
This is the second increase in CNG prices in Mumbai for the month of May. MGL had earlier raised CNG rates by Rs 2 on May 13, while a Re 1 increase was also implemented in April.
Despite the latest revision, the company maintained that CNG remains cheaper than conventional fuels.
“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,” the MGL official was quoted as saying by ToI .
Also read: India raises CNG prices by Rs 2/kg across key regions for fourth time in two weeks
Over 12 lakh CNG vehicles in MMR
The price increase is likely to affect a vast transportation network that depends on CNG across the Mumbai region.
Over the past year, the CNG vehicle population in the Mumbai region has risen by around two lakh vehicles — a 20% jump — taking the total fleet to over 12 lakh. Vehicle registrations indicate the scale of dependence on CNG in public transport and last-mile connectivity.
The region's CNG fleet includes about 4.7 lakh auto-rickshaws and over 1.6 lakh taxis, along with more than five lakh private cars spread across Mumbai, Thane, Mira-Bhayander, Navi Mumbai and Raigad.
MGL also 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 critical role in keeping the region's transport system moving.