Mahanagar Gas Limited (MGL) has raised compressed natural gas (CNG) prices in Mumbai and surrounding areas by Rs 1/kg, bringing the rate to Rs 90/kg. Effective midnight October 31, this marks the second price hike in two months, driven by global supply disruptions linked to escalating tensions between the US, Israel, and Iran.

MGL clarified that reduced domestic gas allocations forced a reliance on higher-priced sources, necessitating the price hike to partially offset rising costs and ensure uninterrupted CNG supply. The hike will affect around 1.293 million vehicles across the Mumbai Metropolitan Region (MMR), including private cars, auto-rickshaws, taxis, and buses. Public transport and cab fares are expected to rise as a result. Auto and taxi unions claimed the hike would add to operating expenses and could lead to demands for another fare revision if fuel costs continued to rise, even after the recent hike in fares.

ALSO READ: CNG Price Hike In UP: Lucknow Sees Rise By Rs 2; Ayodhya Gets Highest Increase From Oct 4; Check City-Wise New Rates

Continuous Price Escalation

On October 1, MGL raised CNG prices by Rs 1 per kg to Rs 89 per kg, following a Rs 2 per kg increase in September to Rs 88 per kg. In May, CNG prices were increased to Rs 86 per kg, while Piped Natural Gas (PNG) rose to Rs 52 per standard cubic metre (SCM).

ALSO READ: Delhi Air Pollution: Non-Compliant Buses To Be Diverted At Borders From Nov 1; Only EV, CNG, BS-VI Allowed

MGL stated it will continue exploring cost-reduction measures to minimise the financial impact on consumers and promote eco-friendly clean fuel adoption. The latest hike will affect nearly 12.93 lakh vehicles across the Mumbai Metropolitan Region (MMR) that run on MGL-supplied CNG. These include auto-rickshaws, taxis, private vehicles and public transport vehicles operated by state authorities and municipal corporations.