Triple whammy for Mumbaikars: Milk, CNG, taxi-auto fares rise

Mumbaikars are set to face a significant financial burden as the prices of milk, CNG, and taxi-rickshaw fares have all seen a substantial increase from September 1, 2026, impacting household budgets ahead of the crucial festive season.

In a blow to household budgets ahead of the festive season, prices of milk, CNG and taxi-rickshaw fare increased in Mumbai from September 1, 2026.

The price of fresh buffalo milk supplied from cattle sheds in Mumbai rose by Rs 9 per litre to reach Rs 102 per litre from Tuesday.

According to the Mumbai Milk Producers' Welfare Association (MMPA), the hiked rate will remain in place until February 28, 2027, to absorb a 60 to 70 per cent jump in milch animal acquisition costs and a 25 per cent rise in feed prices.

"The wholesale price hike by Rs 9 per litre from September 1 means retail rates may also shoot up to Rs 115-125 per litre or more, depending on the localities served, and the local demand," MMPA chairman C K Singh said.

Transport Fares and CNG Price Hike

Auto-rickshaw and black-and-yellow taxi fares in the Mumbai Metropolitan Region (MMR) were on Tuesday increased by Re 1 and Rs 2, respectively, officials said.

Passengers will now have to pay a minimum fare of Rs 27 for auto-rickshaws and Rs 33 for taxis for the first 1.5-km journey.

The fare hike comes as Mahanagar Gas Ltd (MGL) also raised the price of compressed natural gas (CNG) by Rs 2 per kg from midnight, taking the rate to Rs 88 per kg in the MMR.

Reasons Behind Milk Price Increase

The decision to increase the wholesale rate of milk was taken at the bi-annual general body meeting of the MMPA, which supplies fresh buffalo milk through its network of dairies, neighbourhood retailers and farms.

The latest hike was the steepest in the history of the 70-year-old association. The previous increase was from Rs 91 to Rs 93 per litre in February, it was stated.

The move is likely to affect demand for milk, which generally rises by 35 to 40 per cent during festive and marriage seasons when large quantities of sweets are prepared at households and commercial establishments.

It is also likely to increase the cost of milk-based drinks, chilled and frozen desserts and other dairy products.

MMPA members attributed the hike to a rise in the cost of maintaining and feeding buffaloes.

Singh said milch animal prices have seen a 60-70 per cent rise, while the cost of feed items such as "dana", "tuvar", "chuni" and "chana-chuni" have risen by an average of 25 per cent, along with higher costs of grass and hay among others.

Mumbai consumes more than 50 lakh litres of buffalo milk daily, of which MMPA supplied over 7 lakh litres, he said. The latest increase comes ahead of major festivals including the Ganesh festival, Navratri, Diwali, Christmas and Ramzan, and the wedding season.

Taxi and Auto-rickshaw Fare Revision Details

The taxi and auto-rickshaw fare revision was approved by the Mumbai Metropolitan Region Transport Authority (MMRTA) based on the formula derived by the four-member Khatua panel, which takes into account fuel prices and other operating costs while determining fares.

The revised taxi fare is Rs 21.90 per km, up from Rs 20.66, while the auto-rickshaw fare has been increased to Rs 18.22 per km from Rs 17.14, an RTO official said.

The fare revision comes after a gap of 18 months.

The last fare hike of Rs 3 each for taxis and auto-rickshaws in the MMR came into effect on February 1, 2025. There are more than 4.5 lakh auto-rickshaws and over 50,000 black-and-yellow taxis in the MMR, most of which run on CNG.

Drivers can charge the revised fares either after calibrating their electronic fare meters or by displaying the RTO-approved fare table, the official said.

They have been given three months, until the end of November, to get their meters recalibrated. Drivers failing to do so within the stipulated period will face penalties, the official added.

MGL's CNG Price Hike and Market Impact

Mahanagar Gas hike follows Indraprastha Gas Ltd (IGL) hiking CNG price in Delhi by Rs 3.89 per kg to Rs 86.98 per kg, from Rs 83.09 per kg earlier.

The increase took the cumulative rise in Delhi CNG prices this year to nearly Rs 10 per kg. CNG in Delhi was priced at Rs 77.09 per kg at the beginning of the year.

It was raised by Rs 6 per kg in four instalments in the second half of May, taking the price to Rs 83.09 per kg before Saturday's hike.

MGL said demand for CNG has remained strong, with a significant portion of the gas required for the CNG segment being sourced through imported spot re-gasified liquefied natural gas (RLNG).

The rise in international-index-linked gas prices has substantially increased the company's input costs, forcing it to source more gas at higher spot RLNG prices to meet demand, MGL said.

The company said the Rs 2 per kg increase was intended to partially offset the higher cost of gas and ensure continued and sustainable supplies to customers.

MGL has also increased the price of domestic piped natural gas (PNG) by Rs 1 per standard cubic metre (SCM), effective from the same date.

The price revisions come as global energy markets remain sensitive to supply disruptions and geopolitical tensions in the Middle East, with higher international gas prices increasing costs for companies dependent on spot LNG imports.

MGL operates city gas distribution networks across Mumbai, Thane, Raigarh, Ratnagiri, Latur and Dharashiv, as well as Chitradurga and Davangere.

The company supplies CNG to more than 1.3 million vehicles through a network of over 500 stations and has connected around 3 million households to PNG across its operating areas.