CNG becomes costlier by Rs 2 per kg in Mumbai, will auto fares increase now?

New prices of CNG have come into effect in Mumbai metropolitan area from today. Mahanagar Gas Limited (MGL) has increased the price of CNG by Rs 2 per kg. After the implementation of the new rate, CNG is now being sold at the rate of Rs 84 per kg in Mumbai, Thane, Navi Mumbai and other areas of MMR. Earlier, consumers had to pay Rs 82 per kg.

A large part of public transport in Mumbai Metropolitan Region is based on CNG. A large number of auto rickshaws, taxis and small commercial vehicles, Ola Uber, Rapido, Kali Peeli taxis run on CNG. In such a situation, the price increase can have a direct impact on millions of passengers traveling daily.

Will fares increase?

After fuel becoming expensive, auto and taxi unions have intensified their demand for increase in fares. Unions say that in the last few months, along with CNG, the cost of vehicle maintenance, insurance, spare parts and servicing has also increased continuously. Auto rickshaw organizations have put forward the demand for an increase in the minimum fare by at least Re 1 before the administration. Union leaders say that driving a vehicle at the current fare is becoming financially difficult.

On the other hand, passengers say that the already rising inflation has increased the pressure on the domestic budget. Now if auto and taxi fares also increase, then the monthly expenses of people traveling daily to office, school and work will increase further. Lakhs of people in Mumbai and surrounding cities use local trains as well as autos and taxis for last mile connectivity every day. In such a situation, the fare increase can directly impact the common citizens.

Expert opinion

According to energy sector experts, due to fluctuations in international gas prices, increase in supply costs and operational expenses, city gas distribution companies change the prices from time to time. This increase made by MGL has come at a time when a large number of people are turning to CNG vehicles due to high prices of petrol and diesel.

However, the final decision on increasing auto and taxi fares will be taken only after the approval of the Transport Department and the concerned Regional Transport Authority. At present, the new prices of CNG have sparked a new debate in the Mumbai metropolitan area regarding transportation costs, inflation and increasing expenses of the common man.

Input- Vinod Jagdale

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