Mumbai: The price of compressed natural gas (CNG) will be hiked by Rs 3.96 per kg, including taxes, from Saturday while the rate of piped cooking gas will go up by Rs 2.57 per unit. The revised price of CNG, including all taxes, in Mumbai metropolitan region from Saturday morning will be Rs 61.50 per kg while piped gas rates will escalate to Rs 36.50 per unit.
This is the third hike in CNG rates in the past two months. Also, this year, its rate in Mumbai metropolitan region has gone up by around Rs 14 in 10 months.
A CNG car owner said that she had switched to the green fuel two years back as it was cheaper than petrol and diesel, but the Rs 14 hike this year has hit her expense on transportation.
As for kaali-peeli taxis, Mumbai Taximen’s union leader A L Quadros said that due to the huge hikes in 2021, many drivers want to switch to electric cabs in future. Mumbai Rickshawmen’s union leader Thampy Kurien said that the fare hikes given earlier this year were based on CNG price being below Rs 50 per kg, but now it has gone over Rs 60 per kg –reducing drivers’ earnings.
Many aggregator cabs too had switched from diesel to CNG to save costs, but now the hikes have reduced the drivers’ profits and they are likely to demand increase in fares, sources said.
A spokesperson of Mahanagar Gas Limited (MGL) said even after price revision, CNG offers attractive savings of about 62% and 35% as compared to petrol and diesel respectively at current price levels in Mumbai. The comparative price of petrol is Rs 109.98 a litre and diesel is retailing at Rs 94.14 a litre.
“Also, domestic piped gas offers 27% saving compared to current price of domestic LPG cylinder whose cost is nearly Rs 900 per cylinder in Mumbai. Piped gas is safe, reliable and environmentally friendly,” she added.
Asked why prices were hiked, the official said: “In order tso meet the shortfall in domestic gas allocation, MGL is sourcing additional natural gas from the international market. Since there is a substantial increase in natural gas prices internationally, we are constrained to increase prices of CNG and piped gas in Mumbai.”
In the past, there were two slabs for piped gas customers in housing societies, and now this has been discontinued. There will be just a single slab/price for all domestic consumers.
Given the rising number of CNG vehicles, MGL plans to increase its CNG outlets from 272 to 372 in the coming months, officials said.