Mahanagar Gas Limited (MGL) announced a ₹2 increase in the retail price of compressed natural gas (CNG), bringing the new price to ₹84 per kg in Mumbai, effective from May 14. The price hike is attributed to disruptions in the global energy market, particularly due to the ongoing conflict in West Asia, which has affected supply chains and increased procurement costs. MGL stated that geopolitical tensions, rising crude oil prices, and depreciation of the Indian rupee have all contributed to the increased costs of gas procurement.

This price increase will significantly impact the transport sector in the Mumbai Metropolitan Region (MMR), where around 1.28 million vehicles, including 470,000 autorickshaws and 160,000 taxis, rely on CNG. For autorickshaw operators, the operational cost will rise by approximately ₹1.03 per kilometer, pushing the estimated running cost to over ₹18.3 per km. Discussions regarding fare revisions for autorickshaws and taxis are expected to follow. Despite the increase, MGL asserts that CNG remains a budget-friendly option, offering 44% savings compared to petrol and 7% compared to diesel.