The Mumbai CNG price hike will raise the fuel rate to Rs 91.50 per kg from November 15, increasing operating costs for 12.93 lakh compressed natural gas vehicles across the Mumbai Metropolitan Region, including autorickshaws, taxis, private vehicles and public transport vehicles.
Mahanagar Gas Limited (MGL) raised the price by Rs 1.50 per kg, with the revised rate taking effect from midnight on November 14. The increase is the second CNG price revision in a fortnight and comes after a series of hikes that have lifted the rate by Rs 3.50 per kg in less than two months.
According to the price history reported by Loksatta, CNG was priced at Rs 88 per kg after a Rs 2 increase in September. The rate rose by another Rs 1 to Rs 89 in October, reached Rs 90 after a further Rs 1 increase on November 1, and has now moved to Rs 91.50 per kg from November 15.
In a statement issued on Saturday, MGL attributed the latest increase to a significant rise in gas procurement costs amid the continuing crisis in the Middle East. The company also cited a reduction in the allocation of domestically produced gas and increased dependence on imported re-gasified liquefied natural gas, or RLNG.
MGL said demand from the CNG segment remained high while the share of imported gas in its supply mix had increased. It added that the prices of domestic and imported gas are linked to international benchmarks, making procurement costs sensitive to movements in global markets. The company said the revision was necessary to maintain an uninterrupted and consistent supply of CNG and recover part of the higher input cost.
The increase has drawn concern from autorickshaw operators, who say fuel costs are rising faster than fares. Thampi Kurian, a leader of the Mumbai Rickshawmen’s Union, said the operating expenses of autorickshaw drivers across the metropolitan region had increased substantially, while fare revisions had been slower. The minimum autorickshaw fare in the MMR was raised by Rs 1 to Rs 27 in September.
Kurian also questioned the difference between the rates charged by MGL and state-owned Gujarat Energy. Gujarat Energy supplies CNG in Palghar and rural parts of Thane. According to the last rate revision in August, its CNG price in Maharashtra was Rs 85.75 per kg, creating a difference of Rs 5.75 per kg compared with MGL’s revised rate. The new MGL price will apply from November 15.
