MGL Raises CNG Prices in Mumbai, Hikes to Rs 84 per Kg, Raising Speculation on IGL Rate Hikes

CNG Price Hike in Mumbai: Mahanagar Gas Ltd Raises Rates Amid Global Energy Disruptions

Mahanagar Gas Ltd (MGL) has increased compressed natural gas (CNG) prices by Rs 2 per kg across the Mumbai Metropolitan Region (MMR), effective from May 14. The revised retail price now stands at Rs 84 per kg, up from Rs 82 earlier. This decision comes in the wake of rising global energy costs, a weakening rupee, and mounting supply concerns linked to the Iran conflict.

The revised MGL rate will be applicable across Mumbai, Thane, Navi Mumbai, and nearby MMR regions. This move comes at a time when Prime Minister Narendra Modi has called for a voluntary nationwide austerity drive focused on fuel conservation and reducing non-essential imports amid global energy disruptions.

According to MGL, the increase in CNG prices is driven by higher gas procurement costs, elevated crude oil prices, rupee depreciation, and disruptions in the global energy supply chain due to geopolitical tensions in West Asia. The company cited rising gas procurement costs, increased dependence on expensive gas sources, rising crude oil prices, and rupee depreciation as factors contributing to the price hike.

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The latest increase is expected to raise operating costs for both public transport operators and private vehicle owners using CNG across the MMR. According to MGL, nearly 1.28 million vehicles in the region run on CNG, including around 470,000 autorickshaws, over 160,000 taxis, and more than 500,000 private cars.

Autorickshaw unions have demanded a revision in passenger fares, seeking at least a Rs 1 increase in the base fare. They argue that repeated fuel price hikes are eroding driver earnings. The latest revision would increase autorickshaw operating costs by around Rs 1.03 per kilometre, pushing the estimated per-kilometre running cost to over Rs 18.3.

Transport officials have indicated that discussions on revising autorickshaw and taxi fares may take place soon. Despite the latest hike, MGL maintained that CNG continues to remain the most economical fuel option compared to conventional transport fuels. At the new rate of Rs 84 per kg, CNG offers 44% savings compared to petrol and 7% savings over diesel at current market levels.

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With MGL moving first, attention is now shifting to whether Indraprastha Gas Limited could also revise CNG prices in Delhi-NCR if global energy pressures persist.