Inflation-hit Mumbai to feel fresh pinch as CNG prices hiked

Public transport fares in Mumbai and its satellite towns of Thane and Navi Mumbai are set to go up, as Mahanagar Gas Ltd (MGL) has increased the price of compressed natural gas (CNG) by Rs2 a kg and of piped natural gas (PNG) by Rs2.19 per standard cubic metre (SCM).

This means that as of today, CNG costs Rs35.95/kg in Mumbai, Rs36.47 in Thane, and Rs36.30 in Navi Mumbai. The revised price of PNG will be Rs24.09, Rs24.17 and Rs24.17 respectively.

 The move was necessary to recover part of increase in overall input costs and rupee depreciation against the dollar, MGL said.

Taxi and auto unions have already launched demands for fare hikes.

A L Quadros, who heads the Mumbai Taximen's Union, has asked for a Rs5 hike in the minimum fare.

''Every taxi driver in the city spends between 12 to 15 kg of CNG a day. The hike would mean an additional burden of Rs30 a day or close to Rs1,000 per month. This kind of money will pinch the taxi driver hard. The government has no option but to increase the fares,'' he said.

Shashank Rao of the Mumbai Autorickshawmen's Union said, ''We will calculate the impact of the fuel component today and then forward this to the state government.''

At the same time, the hike in PNG prices would raise costs by almost 10 per cent for households that get directly piped gas.

But according to a Times of India report citing sources, the state transport department will resist any demand from unions for a fare hike. "We have decided not to revise auto and taxi fares at least till the year-end. You can expect a revision only in 2014," it cited a senior state government official as saying.

He added that according to a government resolution, fare hikes for autos and taxis could be done only once a year (sometime in May).

A hike in the municipality-run BEST bus fares is also inevitable; officials said they are studying the impact of the rise. The fares of privately-run bus and taxi services are also bound to go up, adding to the already heavy burden of inflation borne by the common man.