Tezzbuzz Desk- People living in Mumbai and surrounding areas have got another shock of inflation. The prices of Compressed Natural Gas (CNG) and Piped Natural Gas (PNG) have been increased once again. Mahanagar Gas Limited (MGL) has announced an increase in the price of CNG by Rs 2 per kg and domestic PNG price by 50 paise per standard cubic meter (SCM). The new rates have become effective from midnight on May 30.
After the latest increase, the price of CNG in Mumbai, Thane, Navi Mumbai and surrounding areas has increased from Rs 84 to Rs 86 per kg. Whereas the new price of domestic PNG has been fixed at Rs 52 per SCM. The company says that due to continuous increase in gas procurement cost, it became necessary to revise the prices.
This decision will directly impact about 12 lakh CNG vehicles, which includes a large number of auto rickshaws, taxis and other public transport vehicles. Apart from this, about 31 lakh domestic PNG consumers will also have to pay more.
Due to increase in fuel prices, the worries of auto and taxi drivers have increased. Various unions have raised the demand for revision in fares. He says that due to continuously increasing costs the current fare structure is no longer practical. According to auto driver organizations, it has become necessary to increase the fare based on the current formula, while taxi unions have also demanded an increase in the base fare.
However, experts believe that despite the increase in prices, CNG still remains a relatively cheaper fuel compared to petrol and diesel. Due to this, drivers still get significant savings compared to petrol and diesel.
It is noteworthy that this is the second time in the month of May that CNG prices have been increased. Earlier on May 13 also, there was an increase of Rs 2 per kg. Prices had increased in April also. According to the company, factors such as instability in the global energy market, geopolitical challenges, rising crude oil prices and rupee weakness have affected the gas purchase cost, leading to this step.
Amidst the continuously rising fuel prices, the concern of common consumers and people associated with the transport sector has increased. All eyes will be on the fare increase and other effects of inflation in the coming days.
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