Mumbai CNG price rises by Rs 1.50, eighth price hike in 11 months

Compressed Natural Gas (CNG) prices have been increased by Rs 1.50 per kg in Mumbai and the Mumbai Metropolitan Region (MMR), taking the rate to Rs 91.50 per kg.The latest hike is expected to increase fuel expenses for autorickshaw and taxi drivers, app-based cab operators and private vehicle owners.Mahanagar Gas Ltd (MGL) announced the price revision on Saturday, with the new rates coming into effect from Sunday.The increase follows a similar hike in Pune and comes amid concerns among vehicle owners and commercial drivers over rising fuel costs. CNG prices have increased by Rs 11 per kg since January this year, when the fuel was available at Rs 80.50 per kg. This represents a rise of approximately 14 per cent in less than 11 months.MGL has increased CNG prices eight times so far this year, taking the rate to Rs 91.50 per kg. The repeated increases have raised concerns among people who depend on CNG-powered vehicles for their daily commute and livelihood.Autorickshaw and taxi drivers, in particular, are likely to face higher operating expenses, while private vehicle owners will also have to spend more on fuel.A consumer expressed concern over the rising cost of living, saying repeated price increases were adding to people's financial burden."When inflation rises, everyone suffers. At a time when prices are increasing across sectors, essential expenses should come down rather than become more expensive.Traffic congestion is already a problem, and the cost of living is rising everywhere.Since people depend on gas to run their vehicles, CNG prices should either be reduced or at least kept unchanged," the consumer said.WHY HAS MGL INCREASED CNG PRICES?MGL attributed the latest price hike to an increase in the cost of procuring natural gas. The company cited the ongoing crisis in the Middle East, a reduction in domestic gas allocation and greater dependence on expensive imported gas as factors contributing to the higher costs.According to MGL, the rising share of imported re-gasified liquefied natural gas (RLNG), whose prices are linked to international markets, has put pressure on CNG procurement costs.Strong demand for CNG has also contributed to the increase.The company said the latest revision would allow it to pass on a portion of the higher gas procurement costs to consumers and help maintain a consistent and stable supply of CNG.MGL added that it was exploring options to reduce costs, with the aim of passing on the benefits to customers. The company also reiterated its commitment to promoting natural gas as a cleaner fuel.With CNG now priced at Rs 91.50 per kg, motorists and commercial vehicle operators across Mumbai and the surrounding areas will have to account for higher fuel expenses.- EndsWith ANI inputs