Mahanagar Gas Limited raised compressed natural gas prices in the Mumbai Metropolitan Region for the second time in May 2024 [1, 2].
The price hike increases operational costs for thousands of auto-rickshaws and public transport vehicles that rely on CNG to navigate the city. This volatility in fuel pricing often leads to demands for fare increases by transport unions to offset the loss in earnings.
According to reports, the price of CNG increased by ₹2 per kg [1]. The change took effect on May 14, 2024 [1]. This adjustment impacts a wide area including Mumbai, Thane, and Navi Mumbai [3].
There are conflicting reports regarding the final retail price following the increase. Some sources said the new rate is ₹84 per kg [1], while other reports said the price reached ₹86 per kg [4].
Company officials and analysts said these price adjustments are due to inflation and disruptions in global gas prices [5]. These external market pressures force local distributors to adjust retail rates to maintain margins.
Auto-rickshaw unions have responded to the increase by seeking a hike in passenger fares [1]. Drivers said that repeated price increases within a single month make it difficult to sustain their livelihoods without adjusting the cost of service for commuters.
“Mahanagar Gas Limited raised compressed natural gas prices... for the second time in May 2024”
The frequency of these price hikes suggests a high sensitivity to global energy market volatility in the Mumbai region. Because CNG is the primary fuel for the city's last-mile connectivity, these increases create a ripple effect: higher fuel costs lead to union pressure for fare hikes, which ultimately increases the cost of living for daily commuters.
