Mumbai: CNG price hiked by Rs 2, now costs Rs 86 per kg; PNG rates also increased

Mumbai residents will have to spend more for fuel and cooking gas after state-run gas distributor Mahanagar Gas Limited (MGL) announced a fresh increase in the prices of Compressed Natural Gas (CNG) and Piped Natural Gas (PNG). Under the revised rates, CNG prices have been increased by Rs 2 per kg, taking the retail price to Rs 86 per kg. PNG, which is widely used for cooking in homes, has become costlier by 50 paise per Standard Cubic Meter (SCM). The revised rates came into effect on May 30.

Second CNG price hike this month 

This is the second CNG price increase announced by MGL in recent weeks. The company had earlier raised CNG rates by Rs 2 per kg on May 14. The latest revision will be applicable across Mumbai, Thane, Navi Mumbai and other parts of the Mumbai Metropolitan Region (MMR). MGL also supplies gas in several other cities, including Kalyan, Raigad, Ratnagiri, Latur, Osmanabad, Chitradurga and Davanagere.

CNG price hike: Auto, taxi and private vehicle owners likely to feel the heat 

The increase is expected to hit thousands of auto-rickshaw drivers, taxi operators and private vehicle owners who depend on CNG as a relatively affordable fuel option. With fuel costs rising again, transport operators fear that operating expenses will increase further, potentially putting pressure on fares in the coming weeks.

Industry representatives have indicated that fare revision proposals may be submitted to transport authorities if fuel prices continue to rise.

PNG price hike: Over 31 lakh households to pay more 

The PNG price hike will also affect household budgets. More than 31 lakh families in the Mumbai Metropolitan Region rely on piped natural gas for cooking, and they will now have to pay higher monthly bills.

Although the increase appears modest, it comes at a time when consumers are already dealing with higher living costs.

Why have prices increased?

As per reports citing MGL officials, several global and domestic factors have pushed up gas procurement costs. These include geopolitical uncertainties affecting energy supply chains, higher dependence on expensive gas sources, rising crude oil prices and the weakening of the Indian rupee.

Officials said these factors have significantly increased the cost of sourcing natural gas, leading to the latest price revision. Despite the hike, MGL maintains that CNG continues to offer substantial savings compared to conventional fuels.

According to the company, even at the revised rate, CNG remains around 45 per cent cheaper than petrol and about 12 per cent cheaper than diesel in Mumbai.

The number of CNG-powered vehicles in the Mumbai region has grown rapidly over the past year, crossing 12 lakh vehicles. The fleet includes around 4.7 lakh auto-rickshaws, over 1.6 lakh taxis and more than five lakh private vehicles.

Also Read: After petrol and diesel, CNG prices hiked again, to cost Rs 83.09 per kg in Delhi after Rs 2 hike