Mahanagar Gas Limited has increased the prices of CNG and PNG in Mumbai and its surrounding areas. The new prices have come into effect from the midnight of May 29-30.
According to the new prices, now CNG will have to be paid at Rs 86 per kg. The domestic piped natural gas (PNG) rate has been increased to Rs 52 per SCM. The CNG rate has been increased by Rs 2 per kg and the PNG rate by 50 paise.
According to the information given by MGL, the cost of purchasing gas has increased due to low supply of domestic natural gas, increasing dependence on expensive gas sources and depreciation of the rupee. Therefore, the company clarified that the price hike has become inevitable.
Notably, this is the second time in the last two weeks that CNG prices have been hiked. Earlier, on May 13, it was increased by Rs 2 per kg. It is being expressed that the financial stress on rickshaw and taxi drivers is likely to increase due to the consecutive price hike.
Meanwhile, after this increase, the demand for fare hike from rickshaw-taxi associations may gain momentum again. After the previous hike, the associations had demanded a fare hike of Rs 1 per kilometre. The drivers' associations say that the increase in fuel and maintenance costs is affecting their income.
However, MGL claims that CNG is still a cost-effective fuel compared to petrol and diesel. According to the company, using CNG at the current rates saves about 45 percent compared to petrol and about 12 percent compared to diesel.
This new price hike will affect lakhs of drivers, passengers and domestic customers in the Mumbai metropolitan region.
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