Compressed natural gas (CNG) has become costlier in Mumbai for the second time in less than 15 days, prompting transport unions to renew demands for an increase in auto-rickshaw and taxi fares.
Mahanagar Gas Ltd (MGL) announced a ₹2 per kg increase in CNG prices, effective from midnight on May 29-30. The revision takes the retail price of CNG in Mumbai and adjoining areas to ₹86 per kg from ₹84 per kg.
The company has also raised domestic piped natural gas (PNG) prices by 50 paise per standard cubic metre (SCM), taking the rate to ₹52 per SCM. The latest increase is expected to impact nearly 12 lakh CNG-powered vehicles operating across the Mumbai Metropolitan Region (MMR), including around 2.8 lakh auto-rickshaws.
Rising gas procurement costs behind the hike
According to MGL officials, the revision was driven by increasing gas procurement expenses. The company said reduced allocation of domestic natural gas, greater dependence on higher-cost gas sources and depreciation of the Indian rupee have significantly increased input costs.
Also Read | ‘Slightly offensive’: Delhi HC refuses relief to suspended Cockroach Janta Party X account
“Due to a significant increase in gas procurement costs caused by reduced allocation of domestic gas, increased dependence on higher-cost gas sources, and depreciation of the Indian Rupee, the overall cost of gas has risen considerably,” company sources said.
ANI Officials explained that lower availability of domestically supplied gas has forced MGL to purchase a larger share of fuel requirements from more expensive sources, leading to higher operational costs.
The latest revision follows a previous CNG price increase that came into effect on May 13-14.
Transport unions seek fare revision
With successive price increases in fuel, unions representing auto-rickshaw and taxi drivers have reiterated their demand for raising passenger fares. The head of the Mumbai Rickshawmen’s Union, Thampy Kurien, said the present formula for revising fares shows that there was a need for increasing base fares.
“The formula, which takes into account rising fuel rates, shows a need for a fare hike of around ₹1.12 per kilometre on the base fare, which is rounded off to a rupee fare hike,” Kurien said.
Departmental sources said that in case any such proposal was made, the same will be taken to the Mumbai Metropolitan Region Transport Authority (MMRTA), which takes a call on fare structure in auto-rickshaws and taxis.
Taxis' unions too demanded an increase of ₹2-3 in their minimum fares. They argued that continuous revisions in fuel prices have increased operational costs considerably over the last one year.
Union representatives said drivers are finding it increasingly difficult to absorb the impact of rising fuel prices without a corresponding adjustment in fares. “The back-to-back hikes are making it impossible to survive without a corresponding fare correction,” a union representative said.
Also Read | Will India switch to plastic currency? RBI revives long-pending polymer plan
Commuters may feel the impact
If transport authorities approve a fare revision, commuters across Mumbai, Thane, Navi Mumbai and surrounding areas could face higher travel costs in the coming weeks.
However, MGL continued to emphasise that CNG continues to be one of the cheapest fuels for transport even after the recent price hike. As per the organization, CNG is still able to save commuters roughly 45% as compared to petrol and around 12% as compared to diesel.
For the time being, all eyes will be on whether the transport authorities will decide to increase tariffs amid increasing costs of operations.
