CNG up Re 1 a kg in Mumbai to Rs 89, adding to auto and taxi fuel costs
Mahanagar Gas Limited raised CNG prices by Re 1 per kg from October 1, taking the rate in Mumbai and surrounding areas to Rs 89 per kg.
Motorists in Mumbai and surrounding areas face another price rise. Mahanagar Gas Limited (MGL) has raised CNG prices in Mumbai again. From October 1, CNG costs Re 1 more per kg, and the rate in Mumbai and surrounding areas is now Rs 89 per kg.
The repeated increases have added to the fuel expenses of auto-rickshaw and taxi drivers, who have felt the effect for the past few months. CNG prices have gone up by a total of Rs 8 per kg since April, raising the daily expenses of CNG vehicle owners considerably.
Fuel is a regular and major expense for auto and taxi drivers, so every increase in CNG prices directly affects their earnings. A demand for higher passenger fares is expected to be raised in the coming days.
MGL has cited higher gas procurement costs as the reason. According to the company, the prices of imported re-gasified liquefied natural gas (RLNG) are linked to an international gas index. The company said that when natural gas prices rose in the international market, buying gas became costlier, and this affected the selling price of CNG.
Thampy Koorien, president of an auto-rickshaw union, explained how much the increase adds to auto drivers' costs. According to him, the Re 1 rise in CNG has increased drivers' fuel cost by about 3.9 paise per km.
Koorien said drivers are also bearing the additional burden of earlier increases. The total additional fuel cost has now reached about 12 paise per km. He also said the additional cost was earlier about 66 paise per km.
The repeated rise in CNG prices may bring the question of auto and taxi fares back into discussion. Koorien said that a Rs 3 increase in CNG prices could affect auto fares by about Rs 3. With CNG now at Rs 89 per kg, passengers are watching what immediate effect this will have on auto and taxi fares in Mumbai.
Meanwhile, the rising CNG price is increasing the monthly expenses of lakhs of CNG vehicle drivers in Mumbai. Further discussion on fuel prices and passenger fares is likely.
This year's increases were: Re 1 per kg on April 12, Rs 2 on May 14, Rs 2 on May 30, Rs 2 on September 1 and Re 1 per kg on October 1. The total increase is Rs 8 per kg, and the current price is Rs 89 per kg.
