Consumers in the Mumbai Metropolitan Region (MMR) will pay more for gas after Mahanagar Gas Ltd. (MGL) raised domestic Piped Natural Gas (PNG) cost by 50 paise per unit and increased Compressed Natural Gas (CNG) rates by Rs 2 per kg on Saturday.
Motorists and households across Mumbai and neighbouring areas are set to face higher fuel costs after CNG prices were revised upwards from Rs 84 to Rs 86 per kg. The move affects a vast network of auto-rickshaws, taxis and buses operating in the region.
PNG prices have also been increased, with consumers now paying Rs 52 per unit, impacting over 31 lakh households.
"Due to a significant increase in gas procurement costs caused by reduced allocation of domestic gas, increased dependence on higher-cost gas sources, and depreciation of the Indian Rupee, the overall cost of gas has risen considerably," the MGL said in a statement.
"The company continues to explore avenues to optimise costs and pass on benefits to consumers, ensuring the widespread adoption of natural gas as a cleaner fuel alternative," the statement added.
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This is the second upward revision in CNG prices by MGL in recent weeks. The distributor had implemented a similar Rs 2-per-kg increase on May 14.
The latest hike covers Mumbai, Thane, Navi Mumbai and other parts of the MMR, while MGL's gas supply network also extends to cities such as Kalyan, Raigad, Ratnagiri, Latur, Osmanabad, Chitradurga and Davanagere.
Higher CNG rates are set to impact commuters and transport providers alike, increasing operating costs for vehicles powered by the fuel. However, it still remains a cheaper alternative to petrol and diesel in terms of running costs per kilometre.
Fuel prices continued their upward trajectory on Monday, with petrol becoming Rs 2.61 per litre costlier and diesel rising by Rs 2.71 per litre. The latest revision is the fourth in under 14 days and comes amid the delayed transmission of higher global oil costs driven by the US-Iran war. In Mumbai, petrol and diesel are currently priced at Rs 111.21 and Rs 97.83 per litre, respectively.
Fuel prices have been raised as part of a wider effort to manage India's energy expenditure during a period of geopolitical uncertainty. The Middle East conflict, which erupted on Feb. 28, following joint US-Israeli military action against Iran, has since intensified, with Iran responding through strikes targeting Israel and US bases in the region.
With global energy prices remaining elevated, Prime Minister Narendra Modi has urged both government offices and the public to adopt measures aimed at reducing fuel usage. His recommendations included encouraging remote working and curbing discretionary travel to help ease pressure on India's external finances.
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