Pune’s commuters and transporters are grappling with the latest surge in Compressed Natural Gas (CNG) prices, which have risen to ₹89.75 per kilogram as of April 9, 2025. This marks the fourth price hike in the past year, totaling a ₹5.50 increase since December 2024.
Factors Driving the Price Increase
According to Maharashtra Natural Gas Limited (MNGL), the recent hikes are attributed to escalating input costs, including a 4% rise in the price of domestic gas and a 5% increase in trade margins charged by oil marketing companies . Despite these challenges, MNGL emphasizes that CNG remains a cost-effective alternative, offering savings of approximately 50% compared to petrol and 28% compared to diesel for passenger vehicles.
Impact on Auto-Rickshaw Drivers
Auto-rickshaw drivers are among the most affected by these price hikes. Nitin Pawar, General Secretary of the Rickshaw Panchayat Union, expressed concerns over the increasing number of auto-rickshaws and the rising fuel costs, stating, “Despite many requests, the open permit system has not been stopped. This has led to many auto drivers not earning enough. However, the frequent rise in CNG prices cannot be taken lightly. We would be forced to push hard for a fare hike now”.
Shafiq Patel, President of Azad Rickshaw Chalak Sanghatna, highlighted the dilemma faced by drivers: “Asking for an increase in fares could prove even more harmful for auto drivers because their numbers have increased and business is presently bad. We were in a Catch-22 situation and don’t know how to go about it”
Effects on Daily Commuters and Logistics Businesses
Daily commuters are feeling the pinch as auto-rickshaw fares rise in response to increased fuel costs. Many are now reconsidering their transportation options, leading to a decline in short-distance rides. This shift is also impacting logistics businesses that rely on CNG-powered vehicles for deliveries, as higher operational costs are squeezing profit margins.
Call for Government Intervention
In light of these challenges, there is a growing call for government intervention. Auto-rickshaw unions have appealed to the state transport department for a fare hike to offset the rising CNG prices. However, with the increasing number of auto-rickshaws and declining business, drivers are caught in a difficult situation, unsure of how to proceed.
As Pune continues to navigate these fluctuations in CNG prices, the balance between affordability for consumers and sustainability for transporters remains a pressing concern.
