Mumbai faces cost-of-living increase as fuel, transport, and milk prices rise

Mumbai and the wider Mumbai Metropolitan Region (MMR) woke up to higher costs on Tuesday, with CNG, piped cooking gas and buffalo milk prices going up along with autorickshaw and taxi fares, according to Shreedhar Rathi’s report in Times of India.

Mahanagar Gas Ltd (MGL) raised CNG prices by Rs 2 per kg, taking the rate in Mumbai and adjoining areas from Rs 86 to Rs 88 per kg. The company also increased piped natural gas (PNG) prices by Rs 1 per standard cubic metre, affecting over 30 lakh households connected to its network.

MGL attributed the hike to rising input costs linked to the ongoing Middle East crisis, which has pushed up international gas prices, with a large share of CNG demand now being met through imported spot regasified LNG at higher rates, the report said.

The increase is expected to hit Mumbai's CNG-dependent transport sector hard, given that the MMR has more than 4.5 lakh autorickshaws and tens of thousands of taxis running on the fuel.

Revised autorickshaw and taxi fares also kicked in from Tuesday. The minimum autorickshaw fare rose by Re 1, from Rs 26 to Rs 27, while the minimum taxi fare for the city's black-and-yellow cabs went up by Rs 2, from Rs 31 to Rs 33.

Per-kilometre rates were revised to Rs 18.22 for autos (from Rs 17.14) and Rs 21.90 for taxis (from Rs 20.66).

Until meters are recalibrated, drivers have been asked to charge as per RTO-approved tariff cards, with the recalibration cost capped at Rs 700 and a three-month window given to operators. RTO flying squads have been deployed to check overcharging and fake tariff cards, the report added.

Shared-fare charts have also been revised, with fares fixed between Rs 12 and Rs 81 for shared autos and Rs 11 to Rs 73 for shared taxis for trips up to 10 km.

Buffalo milk has also become costlier from September 1, with the Bombay Milk Producers' Association announcing a Rs 9 per litre hike in the wholesale price, taking it from Rs 93 to Rs 102 per litre.

Retail prices are expected to range between Rs 110 and Rs 112 per litre depending on the area, with south Mumbai likely to see prices touch Rs 112 per litre against the earlier Rs 104.

Prices in other parts of the city are expected to rise from around Rs 100 to Rs 110 per litre, depending on the locality, vendor and supplier, according to the report.

The association cited rising costs of cattle feed, transportation, fuel, labour and maintenance for the hike, noting that the cost of producing a litre of milk has now touched about Rs 98. The revised rate will stay in effect until February 28, 2027.

Around 40 lakh litres of buffalo milk are distributed across Mumbai every day, making the price increase a significant addition to household expenses, particularly ahead of the festive season when demand for milk and dairy products typically rises.

According to the report, Mumbai Rickshawmen's Union leader Thampy Kurien said drivers would oppose the CNG hike, pointing out that it comes just as revised passenger fares take effect. This is the fourth CNG price hike in the current financial year since April.