Commuters in the Mumbai Metropolitan Region (MMR) are going to face higher commuting costs as Mahanagar Gas Limited (MGL) has increased the price of CNG from ₹82 to ₹84 per kilogram. The hike will also be implemented in Thane and Navi Mumbai. This price hike comes amid the ongoing West Asia crisis, which has disrupted gas supplies to India. The new rates came into effect from today.
MGL stated that multiple factors played a role in this decision: “Due to geopolitical disruptions affecting the global energy supply chain, coupled with increased dependence on expensive gas sources, rising crude oil prices, and rupee depreciation overall, gas procurement costs have risen significantly”.
This price hike will severely affect public transport operators and drivers, as, according to data provided by MGL, the MMR and surrounding regions contain 12.8 lakh CNG vehicles. This includes 4.7 lakh autorickshaws, over 1.6 lakh taxis, and more than 5 lakh private cars. Hence, a jump in the price of auto and taxi fares could be made. Auto Rickshaw Unions have asked for a revision in rickshaw fares by at least 1 rupee.
This situation begs the question of whether CNG companies in the rest of the country might also announce a hike in their prices?
Despite the oil supply disruptions and global price hike of crude oil to $126 a barrel, the Centre was able to control the price of petrol and diesel in the country. Domestic LPG prices have also not changed since March, but commercial LPG prices have increased, costing more than ₹3000 for a 19kg Cylinder. During the initial phase of the conflict, there was a disruption in the supply of commercial cylinders, which led to many restaurants shutting down and some trimming their menus.
