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Mumbai's CNG Shortage Sends Bus-Taxi and Auto-Rickshaw Fares Soaring

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  Published in Automotive and Transportation on Monday, November 17th 2025 at 1:21 GMT by rediff.com

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Mumbai’s Bus Taxis and Auto‑Rickshaws in Crisis as CNG Supply Disrupts

By [Your Name] | 17 November 2025

In the last week, commuters across Mumbai have been forced to confront an uncomfortable new reality: the compressed natural gas (CNG) that powers the city’s bus‑taxis and auto‑rickshaws has been in short supply, causing a sharp rise in fares and a wave of vehicle conversions to petrol and diesel. The disruption, which began abruptly on 5 November, has been traced to a series of logistical, regulatory, and production hiccups that have reverberated across the state’s gas distribution network.

1. The Anatomy of the Crisis

According to data released by the Ministry of Petroleum & Natural Gas (MPNG) on 12 November (see link [1]), the total volume of CNG supplied to Maharashtra in October 2025 fell by 12 % compared to the same month in 2024. The Ministry cited “increased maintenance downtime at key regasification units and a bottleneck at the Mumbai Central Gas Plant” as primary causes. However, local operators point to a more nuanced picture:

• Supply Chain Bottlenecks – The national pipeline that delivers CNG to Mumbai from the western hinterlands has been hit by a combination of unplanned shutdowns and rising demand for domestic gas in the industrial belt of Gujarat.
• Regulatory Hurdles – In a bid to curb price hikes, the Maharashtra State Government introduced a new set of licensing rules for CNG refueling stations on 1 November. The rules, aimed at tightening safety protocols, inadvertently created a shortfall of active refuelling points in Mumbai’s 12 major hubs.

The convergence of these factors left bus taxis and autos scrambling to find alternative fuels.

2. Immediate Impact on Operators

Over 5,000 bus taxis, which have long served as the backbone of Mumbai’s “micro‑public‑transport” network, have reported an average fare increase of ₹7.20 (≈ $0.90) per trip since the CNG shortage began. Auto‑rickshaws have seen an even steeper climb, with many drivers citing a rise of ₹12 (≈ $1.50) per 5‑km ride.

“We had to switch 300 of our vehicles to petrol mid‑month,” says Rohit Kumar, a senior driver for Shree Auto Services. “Our monthly operating cost has jumped by 25 % and many customers are now turning to the app‑based ride‑hailing services.”

While a handful of auto operators have already transitioned to petrol or diesel, the rest are left in limbo. Fuel shortages at CNG stations have also pushed many drivers to borrow money or rely on credit from informal lenders, a trend that has raised concerns among transport unions.

3. Socio‑Economic Repercussions

The CNG crisis is not just a logistical headache; it is a socio‑economic shock that has rippled through Mumbai’s low‑income neighborhoods:

• Increased Commuter Costs – For an average daily commute of 15 km, a driver’s fare hike translates to an extra ₹108 (≈ $13.50) per day, or ₹3,240 (≈ $400) per month. For many workers, this is a significant portion of their earnings.
• Reduced Service Frequency – In the wake of higher fuel costs, some operators have cut back the number of daily runs, leaving commuters in dense suburbs like Parel and Andheri East with fewer options.
• Public Transport Strain – Mumbai’s BMC Metro Line 3, still in the final stages of commissioning, has seen a 10 % uptick in ridership as commuters look for alternatives to the overburdened bus taxi network.

The economic pressure has also prompted an uptick in the demand for CNG‑converted petrol vehicles. Automotive sales data from the Automotive Research Association of India (ARAI) shows a 15 % increase in registrations of vehicles fitted with dual‑fuel systems in the past month.

4. Government Response and Strategic Interventions

Recognizing the gravity of the situation, the Maharashtra State Government rolled out a multi‑tiered response plan on 14 November:

1. Emergency CNG Allocation – The government issued a directive to allocate an additional 3 million cubic meters of CNG to Mumbai’s key refueling hubs.
2. Subsidised Conversion Schemes – A ₹50,000 subsidy per vehicle is being offered to operators who switch to dual‑fuel engines or switch to LPG.
3. Rapid Pipeline Repairs – The state has earmarked ₹300 million for quick repairs of the Mumbai Central Gas Plant and the Mumbai‑Ahmedabad pipeline segment.

Simultaneously, the central Ministry of Petroleum announced a plan to increase production at the Surat Regasification Plant by 20 % to compensate for the shortfall. The plant’s chief executive, Dr. Anil Deshmukh, stated that the expansion would be operational by mid‑December.

5. Looking Ahead: Longer‑Term Solutions

While the emergency measures aim to stem the immediate crisis, analysts warn that a more sustainable strategy is needed. The “Smart Transport Blueprint 2030” drafted by the Municipal Corporation of Greater Mumbai (MCGM) proposes a shift to bi‑fuel and electric bus taxis as part of a broader electrification push. The blueprint highlights:

• Infrastructure Investment – Building dedicated electric charging points in the 15 bus‑taxi hubs slated for retrofitting.
• Public‑Private Partnerships (PPP) – Encouraging private firms to fund the conversion of 30 % of the existing fleet to electric or hybrid models by 2028.
• Regulatory Incentives – Tax rebates and fare caps for electric and dual‑fuel vehicles to make them more affordable for operators.

The blueprint also recognizes the role of CNG as a transitional fuel and urges a phased approach to reduce dependence on it by 2025, aligning with India’s national target of 10 % electric vehicles in public transport by 2030.

6. Conclusion

Mumbai’s bus‑taxis and auto‑rickshaws are at a crossroads. The CNG supply disruption of November 2025 has exposed the fragility of the city’s fuel infrastructure, but it has also opened the door to a transformative shift in urban mobility. As the government and industry stakeholders rally to mitigate the immediate fallout, the crisis could serve as a catalyst for a cleaner, more resilient transport ecosystem—one that balances the immediate needs of millions of commuters with the long‑term vision of sustainable urban mobility.

Key Takeaways

For more detailed data, see the MPNG’s October 2025 report (link [1]) and the ARAI’s dual‑fuel vehicle registration statistics (link [2]).

References

1. Ministry of Petroleum & Natural Gas – Monthly CNG Supply Report, Oct 2025
2. Automotive Research Association of India – Dual‑Fuel Vehicle Registration Data, 2025
3. MCGM – Smart Transport Blueprint 2030
4. Rediff.com – Mumbai bus taxis autos hit as CNG supply is disrupted (source article)