MGL Announces Fresh Increase

Mumbai’s compressed natural gas (CNG) became costlier once again on Friday night. Mahanagar Gas Limited (MGL) raised the price by ₹2 per kg, taking the new rate to ₹86 per kg in Mumbai and its neighbouring areas. Domestic piped natural gas (PNG) also saw a hike of 50 paise per standard cubic metre (SCM), now priced at ₹52 per SCM. The revised rates came into effect from midnight of May 29-30.

This marks the second upward revision in CNG prices within just 15 days. Earlier, on May 13-14, MGL had increased rates by another ₹2 per kg.

Reasons Behind the Repeated Hikes

Company officials cited reduced domestic gas allocation as the primary reason for the latest increase. With lower supply from local sources, MGL has been forced to procure more expensive gas from international markets. The weakening of the Indian rupee against the US dollar has further pushed up the overall cost of procurement.

“Due to the shortfall in domestic gas availability, we have had to rely on costlier imported gas,” sources familiar with the matter said. The cumulative impact of these factors has led to the price adjustment.

CNG Still Cheaper Than Petrol and Diesel

Despite the back-to-back hikes, MGL maintained that CNG remains one of the most economical fuels in the market. According to the company, using CNG offers around 45% savings compared to petrol and approximately 12% savings against diesel in Mumbai at current prices.

This claim is significant for Mumbai, which has one of the largest CNG ecosystems in the country.

Impact on Auto and Taxi Operators

The fresh hike has prompted immediate reactions from transport unions. Auto-rickshaw and taxi associations in Mumbai have renewed their demand for a fare increase of ₹2 to ₹3. Operators argue that the rise in operating costs due to repeated CNG price revisions is putting pressure on their margins.

With over 4.7 lakh auto-rickshaws, 1.6 lakh taxis, and more than five lakh private CNG cars operating in the Mumbai Metropolitan Region (MMR), the impact is widespread. In total, the region now has more than 12 lakh CNG-powered vehicles, a number that has grown by nearly two lakh in the past year alone.

Delhi Sees Even More Frequent Increases

The situation is not unique to Mumbai. In Delhi, Indraprastha Gas Limited (IGL) has hiked CNG prices four times in the last two weeks, with the latest increase of ₹2 per kg on May 26. Geopolitical tensions, including the Iran conflict, have contributed to supply concerns and price volatility in the national capital as well.

What is SCM?

SCM, or Standard Cubic Metre, is the standard unit used for measuring and billing piped natural gas supplied to households. It helps calculate consumption under standardised temperature and pressure conditions.

Public Reaction and Commuter Concerns

Many daily commuters and fleet operators expressed concern over the frequent price revisions. For middle-class households using PNG for cooking, the 50-paise increase per SCM adds to monthly expenses, though the per-unit rise remains relatively modest.

Transport unions indicated they would soon meet state transport authorities to press for fare revision. Any approval for higher auto and taxi fares could further impact common citizens already dealing with rising living costs.

Broader Context of CNG Adoption

Mumbai and its extended region have aggressively pushed CNG adoption over the past two decades to combat air pollution. The large fleet of public and private CNG vehicles has helped reduce emissions compared to petrol and diesel. However, repeated price hikes may test the long-term economics for many users, particularly small commercial vehicle operators.

MGL has not indicated when the next review of prices may take place. Industry watchers suggest that prices will continue to remain linked to global gas rates and currency fluctuations in the near term.

The latest increase once again brings the focus back on the need for more stable domestic gas production and diversified import sources to shield consumers from frequent price shocks.