Compressed Natural Gas (CNG) prices have increased again in the Mumbai Metropolitan Region. Due to this, the auto-rickshaw and taxi unions have demanded another hike in fares. Drivers argue that frequent changes in fuel prices have erased the benefits of recent fare hikes. Mahanagar Gas Limited (MGL) on Saturday announced an increase in CNG price by Rs 1.50 per kg. Due to this, the retail rate has increased from Rs 90 to Rs 91.50 per kg from Sunday. Earlier also on November 1, the price was increased by Rs 1 per kg. Thus, the price of CNG has increased by Rs 5.50 per kg in the last 75 days.
Traveling by auto-rickshaws and taxis can be expensive
This recent hike in prices could make travel more expensive for millions of people who depend on auto-rickshaws and taxis in the region. Auto unions say rising fuel prices, rising maintenance costs and consumer price index (CPI) related costs are making it difficult for drivers to maintain their earnings under the current fare structure. Mumbai Rickshawmen’s Union leader Thampi Kurian told TOI that this latest price hike has completely nullified the benefits of the recent fare changes. He said that after the last fare hike, when CNG prices were hiked again, the work of recalibrating (resetting) auto meters was not completed.
The fare may increase by Rs 2
Based on the fare revision formula, the unions estimate that the minimum auto-rickshaw fare should be increased by another Rs 2, raising the fare for the first 1.5 km from Rs 27 to Rs 29. The demand comes at a time when work is underway to recalibrate auto-rickshaw meters across MMR. The transport department has set a deadline of November 30 to complete this work. Explaining the change in prices, MGL said the Middle East crisis, reduction in domestic gas allocation and increasing dependence on imported regasified liquefied natural gas (RLNG) have significantly increased the cost of gas procurement. RLNG prices are linked to the international market.
Why was there a need to increase the price of CNG?
The company said the increase was necessary to ensure uninterrupted supply of CNG and to offset part of the increased price. The impact of this addition could be severe in the MMR (Mumbai Metropolitan Region), where about 4.7 lakh auto-rickshaws, 2 lakh taxis and about 6 lakh private cars run on CNG. There are 529 CNG filling stations in the area, catering to the needs of approximately 13.5 lakh CNG vehicles. At the same time, there has been no change in piped cooking gas (PNG) prices, giving relief to around 33 lakh households.
