CNG gets costlier by Rs 1.50/kg in Mumbai, auto unions seek another fare hike

A fresh increase in compressed natural gas (CNG) prices across the Mumbai Metropolitan Region (MMR) has renewed demands from autorickshaw and taxi unions for another fare hike, with drivers arguing that successive fuel price revisions have eroded the gains from the recent increase in fares.

Mahanagar Gas Ltd (MGL) on Saturday announced a hike of Rs 1.50 per kg in CNG prices, taking the retail rate from Rs 90 to Rs 91.50 per kg with effect from Sunday. This comes less than a fortnight after a Re 1 per kg increase on November 1, taking the cumulative rise in CNG prices to Rs 5.50 per kg over the past 75 days.

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The latest revision could translate into higher commuting costs for millions of people who depend on autorickshaws and taxis across the region. Auto unions say rising fuel prices, coupled with higher maintenance expenses and consumer price index-linked costs, have made it increasingly difficult for drivers to sustain their earnings under the existing fare structure.

Thampy Kurien, leader of the Mumbai Rickshawmen’s Union, told Times of India that the latest increase had effectively wiped out the benefit of the recent fare revision. He pointed out that CNG prices had risen again even before the recalibration of auto meters following the previous fare hike was complete.

Based on the fare revision formula, unions estimate that the minimum autorickshaw fare should be raised by another Rs 2, from Rs 27 to Rs 29 for the first 1.5 km.

The demand comes at a time when autorickshaw meter recalibration across MMR is still underway. The transport department has set November 30 as the deadline for completing the exercise.

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Explaining the latest price revision, MGL said gas procurement costs had increased sharply due to the Middle East crisis, reduced domestic gas allocation and greater dependence on imported regasified liquefied natural gas (RLNG), whose prices are linked to international markets. The company said the increase was necessary to partly offset rising input costs while ensuring an uninterrupted supply of CNG.

The impact of the hike could be significant across MMR, where nearly 4.7 lakh autorickshaws, 2 lakh taxis and around 6 lakh private cars run on CNG. The region has 529 CNG filling stations catering to approximately 13.5 lakh CNG vehicles.

Piped cooking gas prices, meanwhile, have been left unchanged, providing relief to nearly 33 lakh households. (With inputs from Times of India)