Hike in CNG Price by INR 2, Auto Unions Renew Demand For Fare Hike

Mahanagar Gas Limited (MGL) has raised the price of CNG by Rs 2 per kg. The new price of CNG is now Rs 77 per kg in the Mumbai Metropolitan Region (MMR). However, the price of piped cooking gas stays the same at Rs 48 per unit.

Residents in the Mumbai Metropolitan Region (MMR) should brace for higher CNG prices. Mahanagar Gas Limited (MGL) has announced an increase of Rs 2 per kg in CNG prices. As a result, the new price of CNG at fuel stations will be Rs 77 per kg. However, the price of piped cooking gas will remain the same at Rs 48 per unit, as confirmed by an MGL official.

Many public transport vehicles, such as auto-rickshaws, taxis, and buses, depend on CNG for their daily fuel. Sources indicate that the rise in CNG prices is likely to trigger fresh demands from the auto union for a Rs 2 fare increase, according to a report.

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“We have already calculated the pending fare hike based on the government-approved formula, which considers the cost of living index, fuel, maintenance, and other factors. With this price rise, we may push for a minimum fare increase of Rs 2 for auto-rickshaws in the region. Based on the formula, the hike should ideally be Rs 2.50 per kilometre,” said Mumbai Rickshawmen’s Union leader Thampy Kurien on Sunday.

Explaining the reason behind the price hike, a senior MGL official told “Due to a shortfall in domestic gas allocation, MGL is sourcing additional market-priced natural gas (imported), which has raised gas costs. To partly offset these higher costs, we are compelled to increase the CNG price by Rs 2 per kg.”

Despite the price hike, Mahanagar Gas Limited (MGL) says CNG is still a more affordable option, offering savings of about 49% compared to petrol and 14% compared to diesel, based on current prices in Mumbai. Over a million vehicles in the Mumbai Metropolitan Region use CNG, and more than 24 lakh households rely on piped gas for cooking. This time, households have been spared any price increase for cooking gas. The last increase in piped gas prices was Rs 1 in July.

Around five lakh private cars in the Mumbai Metropolitan Region run on CNG, and many new car buyers are choosing dual-fuel vehicles that can run on both petrol and CNG. CNG is popular because it is more affordable, costing about Rs 30 less per litre than petrol. It also provides better mileage and requires less maintenance, making it an attractive option for vehicle owners.

MGL is working to increase the number of CNG filling stations to keep up with the growing demand. Currently, there are 348 filling stations in the city, with 2,152 dispensers serving