Mumbai Auto and Taxi Fares Revised Following CNG Price Hike

Commuters in the Mumbai Metropolitan Region (MMR) are facing higher transport costs as auto-rickshaw and black-and-yellow taxi fares were increased by Re 1 and Rs 2, respectively, on Tuesday. Officials confirmed that the adjustment is a direct response to a recent hike in fuel prices.

With the revision, passengers will now pay a minimum fare of Rs 27 for auto-rickshaws, up from previous rates, and Rs 33 for black-and-yellow taxis for the initial 1.5-kilometer journey. On a per-kilometer basis, the revised taxi fare stands at Rs 21.90, marking an increase from Rs 20.66, while the auto-rickshaw fare has risen to Rs 18.22 per kilometer from Rs 17.14, according to a Regional Transport Office (RTO) official.

The fare hike was triggered by Mahanagar Gas Ltd. (MGL), which increased the price of Compressed Natural Gas (CNG) by Rs 2 per kg starting from midnight, bringing the retail rate to Rs 88 per kg in the MMR. The Mumbai Metropolitan Region Transport Authority (MMRTA) approved the fare revision using the pricing formula established by the Khatua panel, a four-member committee that factors in fluctuating fuel prices and overall operating expenses.

This marks the first fare revision for the segment after a gap of 18 months, following the previous hike of Rs 3 each for taxis and autos that came into effect on February 1, 2025. The region's public transport network relies heavily on CNG, with more than 4.5 lakh auto-rickshaws and over 50,000 black-and-yellow taxis operating across the MMR.

Transport authorities have outlined the process for implementing the new rates. Drivers are permitted to charge the revised fares either after completing the calibration of their electronic fare meters or by displaying an RTO-approved fare conversion table. An implementation window has been provided, giving drivers three months until the end of November to recalibrate their meters. Officials noted that drivers who fail to complete the meter recalibration within the stipulated timeframe will face penalties.

"The recent fare revision in Mumbai highlights the direct impact of input cost pressures, particularly fuel prices, on daily operational economics for transport service operators. When a critical utility like CNG experiences a price hike, regulatory frameworks must respond through structured pricing formulas to maintain the viability of transport services. For local micro-entrepreneurs and fleet operators, managing these cost adjustments efficiently while complying with regulatory timelines and meter recalibration mandates is essential for sustaining daily business operations." — Dr. Shishir Gupta, Founder & CEO, StartupLanes