The CNG price hike in the Mumbai Metropolitan Region will raise the price of Mahanagar Gas Limited (MGL)-supplied compressed natural gas by Re 1 per kg from October 1, taking the revised rate to Rs 89 per kg and affecting nearly 12.93 lakh vehicles across the region.
MGL said the increase was necessitated by higher input gas costs, including increased prices for domestically produced gas and imported Regasified Liquefied Natural Gas (RLNG). The company linked the rise in imported gas costs to the ongoing West Asia crisis.
The affected vehicles include auto-rickshaws, taxis, private vehicles and vehicles operated by transport authorities. Since CNG is widely used by public transport and commercial vehicle operators in the MMR, the revised rate will apply across a large part of the region’s road-based mobility network.
MGL said a larger share of the increase in demand for CNG was being met through spot RLNG. Prices for spot RLNG have also risen, increasing the company’s gas procurement expenses. According to the company, the latest revision will partially offset the higher cost of input gas and help maintain a sustained supply of natural gas to its customers.
The October increase follows two earlier price revisions this year. In September, MGL raised the CNG price by Rs 2 per kg, taking it to Rs 88 per kg. Before that, in May, the company increased the price of CNG to Rs 86 per kg and raised the price of piped natural gas (PNG) to Rs 52 per standard cubic metre.
MGL had attributed the May increase to higher gas procurement costs resulting from reduced allocation of domestic gas and depreciation of the Indian rupee against the US dollar. The company’s latest statement again points to the balance between domestic gas availability and the cost of imported supply as a factor shaping prices for urban consumers.
For auto-rickshaw and taxi operators, fuel costs are a direct operating expense, while private vehicle owners will face a higher cost for each kilogram of CNG purchased. The input supplied does not specify whether fares for autos, taxis or other public transport services will be revised following the increase.
MGL said it would continue to explore ways to optimise gas procurement while promoting natural gas as a cleaner fuel alternative. The new CNG price of Rs 89 per kg applies to MGL-supplied CNG across the Mumbai Metropolitan Region from October 1.