Mumbai: The Mahanagar Gas Limited (MGL) announced a Rs 2 per kg hike for CNG, while there is no hike in piped cooking gas across the Mumbai Metropolitan Region. With this, the revised retail price of CNG at the pumps will be Rs 77 per kg, and the piped gas price will continue to be at the same rate of Rs 48 per unit, an MGL official said.
A large number of public transport vehicles such as autos, taxis, and buses across the region depend on CNG for daily fuel.Sources said that with the hike in CNG rates, the auto union will renew its demand for a Rs 2 fare hike. “We have already calculated the hike which is pending as per the govt approved formula, based on the cost of living index, fuel, maintenance, and other factors. With the present hike, we may demand a minimum Rs 2 hike in fares for autorickshaws in the region. As per the govt approved hike calculation formula, it should be a hike of Rs 2.50 per km for auto fare,” said Mumbai Rickshawmen’s Union leader Thampy Kurien on Sunday.
Commenting on the reason for the hike, an MGL senior official told TOI: “To meet the shortfall in domestic gas allocation, MGL is sourcing additional market-priced natural gas (imported), which has resulted in higher gas costs. To partially offset the increase in gas cost, MGL is constrained to increase the delivered price of CNG by Rs 2 per kg.”
Even after the above revision, MGL’s CNG offers attractive savings of about 49% and 14% compared to petrol and diesel, respectively, at current price levels in Mumbai, the official said. While over a million vehicles in the Mumbai metropolitan region run on CNG fuel, more than 24 lakh households depend on the piped gas supply for cooking, and the latter have got relief with zero hike this time. In July, the cooking gas price was hiked by a rupee.
The private car population on CNG is around 5 lakh, and there are several car buyers who now opt for dual fuel, which includes petrol and CNG. CNG is an affordable fuel for many as it costs around Rs 30 less than petrol and gives more mileage, along with less cost of maintenance. MGL authorities said that they are expanding the number of CNG filling outlets across the city. At present, there are 348 outlets with 2152 CNG dispensers catering to the increasing demand of cars in the Mumbai region.