Mumbai, the price of Compressed Natural Gas (CNG) has been increased by Rs 1.5 per kilogram.
The revision, effective from April 9, 2025, also includes a hike of Rs 1 per unit for piped cooking gas, a change that will impact consumers across the Mumbai Metropolitan Region (MMR). The decision comes after no price changes for over three months, making it the fourth CNG price hike in the last six months. The price of CNG in Mumbai, Thane, and surrounding areas will now be Rs 79.50 per kg, while the cost of piped cooking gas will rise to Rs 49 per unit. Public transport services, including taxis, autos, and buses, which rely heavily on CNG for their operations, will face higher fuel costs, potentially driving up fares further in the future. Public transport fares have already seen an increase in February 2025, with autorickshaw and taxi fares hiked by Rs 3 per ride, a decision driven partly by rising fuel prices. Although CNG has traditionally been a more affordable and eco-friendly alternative to petrol and diesel, these recurring price hikes could cause a ripple effect on transportation costs, which could, in turn, affect daily commuters.
Mahanagar Gas Limited (MGL), the supplier of CNG in the region, attributed the price rise to the combined impact of higher domestic gas prices and fluctuating exchange rates. A senior MGL official stated, “The increase in domestic gas costs, coupled with the impact of the exchange rate, has led MGL to revise the prices of both CNG and piped natural gas (PNG). Despite this increase, CNG continues to offer attractive savings of around 47% compared to petrol and 12% compared to diesel, providing an affordable option for drivers.” At present, MGL operates 358 CNG stations across MMR, catering to the needs of private vehicle owners, public transport drivers, and households that use piped gas for cooking. The city of Mumbai alone has approximately three lakh autorickshaws and over 20,000 kaali-peeli taxis, all of which rely on CNG. An estimated five lakh private cars in the MMR are also powered by CNG, with many vehicle owners opting for dual-fuel systems that run on both petrol and CNG. While the price hikes are expected to impact the operational costs of public transport and household budgets, there is some relief in the form of the environmental benefits that CNG offers. Compared to traditional fuels, CNG produces significantly fewer emissions, making it a cleaner and greener alternative, especially in a city like Mumbai, where air quality has long been a point of concern. However, the question remains whether such price hikes could push commuters and businesses back towards more polluting fuel options in the long run.
Despite the higher prices, MGL emphasised the continued advantages of using CNG and piped gas. The official pointed out that the shift towards CNG-powered vehicles had helped reduce pollution levels in the city, making it a critical fuel choice for sustainability. In addition, piped cooking gas continues to offer convenience, safety, and environmental benefits, with over 24 lakh households in MMR depending on it for their daily cooking needs. The cumulative effect of these price increases could be a challenge for the region’s cost-conscious commuters, but MGL’s continued investment in expanding CNG infrastructure could offer some long-term benefits. There is also a growing push from environmental experts and activists to accelerate the use of cleaner fuels, even if it means temporarily absorbing higher costs. While these price hikes are seen as a response to global and national economic factors, there is an ongoing debate about how cities like Mumbai can better balance rising fuel prices with sustainability goals. The city’s reliance on CNG as an environmentally friendly alternative fuel highlights the complexities of urban energy consumption and the challenges faced by citizens and businesses as they adapt to these changes.
The coming months will be crucial in gauging the long-term effects of these price hikes, both on the economy and on Mumbai’s push for more sustainable, zero-emission transportation options. As more people and businesses transition to cleaner fuels, the pressure will grow on policymakers to keep prices competitive while advancing the city’s green ambitions.
Mumbai Faces CNG Price Hike of Rs 1.5 Per Kg
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