After fuel, LPG, now CNG gets expensive; Will your taxi, auto ride hit your pocket next?

CNG is methane gas stored at high pressure and a form of fuel which is seen as alternative to gasoline (petrol), diesel and even propane/LPG.

After fuel, LPG, now CNG gets expensive; Will your taxi, auto ride hit your pocket next?
Representational Image: Photo: Official website
By ZeeBiz WebTeam
Updated: Tue, Oct 02, 2018
12:30 pm
Mumbai, ZeeBiz WebDesk
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Indian citizens are trapped from all corners as far as skyrocketing fuel prices are concerned! How? Well for starters, they are paying all-time high petrol and diesel prices. Rates of petrol have reached near Rs 92 per litre in Mumbai, and diesel near Rs 80. Then there are airlines, which themselves are engulfed by soaring jet fuel prices. As if these were not enough, even cooking gas has become expensive with subsidised and non-subsidised LPG price hike. It was only the CNG users who were actually enjoying some relief till now, but even their good times have come to an end. One of the largest CNG and PNG distributors, Mahanagar Gas has now hiked the price of CNG and domestic PNG. 

Revised delivered prices inclusive of all taxes of CNG and Domestic PNG in and around Mumbai will be Rs 49.61/Kg and Rs  29.40/SCM (Slab 1) and Rs 35.00/SCM (Slab 2) respectively. Earlier the price was  Rs 46.17/Kg and  Rs. 27.25/SCM (Slab 1) and Rs 32.85/SCM (Slab 2) respectively.

Explaining why CNG and PNG price had to be raised, MGL  highlighted the recent increase in ‘Domestic Natural Gas (APM) Price’ from US$ 3.06 / MMBTU (GCV) to US$ 3.36 /MMBTU (GCV). Also significant dollar appreciation against rupee. Lastly, an increase in regulated transportation tariff of Dahej-Uran-Panvel-Dhabol NG Pipeline Network also added to the problem. 

Hence, MGL was constrained to increase the basic price of Compressed Natural Gas (CNG) by Rs 2.66/Kg and Domestic Piped Natural Gas (PNG) by Rs 1.89/ SCM in and around Mumbai effective from midnight October 01. 

Now this comes as a bad news for people who use taxis and auto rickshaws on daily basis. These two transports are the ones that use CNG heavily. 

According to MGL, This increase would have a marginal impact of Rs 0.10/KM and Rs 0.13/KM on the per KM running costs of Auto rickshaws and Taxis respectively. 

MGL said, “even after the above revision, MGL’s CNG still continues to be a very attractive proposition and offers savings of about 61% and 38% as compared to petrol and diesel respectively at current price levels in Mumbai.”

However, with the rising petrol and diesel prices, citizens have shown grave disappointment in the way they are being charged. Hence, it would only be a matter of time, that even your rickshaw or taxi wala would come out on street nudging government help them in their CNG price hike. Some may even raise their rates, if CNG continues to rise ahead. 
 

CNG is a methane stored at high pressure and a form of fuel which are seen as alternative to gasoline (petrol), diesel fuel and propane/LPG.
 

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