From Auto Rides to Air Travel: Fuel and Transport Costs Rise across India as CNG, ATF and LPG Prices Increase
Moneylife Digital Team 01 September 2026
Mumbai and the wider Mumbai metropolitan region (MMR) have entered September with a series of price increases affecting daily commuters and businesses. Auto-rickshaw and black-and-yellow taxi fares have been raised from Tuesday, while Mahanagar Gas Ltd (MGL) has increased prices of compressed natural gas (CNG) and domestic piped natural gas (PNG) in Mumbai, citing higher input costs linked to the ongoing crisis in the Middle East.
 
At the national level, aviation turbine fuel (ATF) prices have also risen by 5.46%, while commercial liquefied petroleum gas (LPG) cylinders have become costlier by ₹9.50.
 
The latest revisions could add to household and business costs, with commuters facing higher fares for short-distance journeys and motorists using CNG paying more at the pump.
 
Auto Minimum Fare Rises to ₹27
The Mumbai Metropolitan Region Transport Authority (MMRTA) has approved a ₹1 increase in the minimum autorickshaw fare, from 1st September. The minimum fare for an autorickshaw has increased from ₹26 to ₹27 for the first 1.5km.
 
The minimum fare for black-and-yellow taxis has simultaneously been increased by ₹2, from ₹31 to ₹33 for the first 1.5km.
 
The fare revisions are likely to directly affect daily commuters, particularly those relying on autorickshaws and taxis for short-distance journeys and last-mile connectivity.
 
The increase has already triggered concerns among commuters, who fear that even a relatively small revision could add to their monthly transportation expenses.
 
Autorickshaw union leaders have also urged the government to reconsider the ₹1 fare increase, arguing against it.
 
Mumbai CNG Rises to ₹88/kg
Adding to the pressure on road transport users, Mahanagar Gas has increased the price of CNG in and around Mumbai by ₹2 per kg. The revised CNG price is now ₹88/kg, effective from midnight on 1st September.
 
MGL has also increased the price of domestic PNG by ₹1 per standard cubic metre (SCM).
 
The company attributed the increase to a sharp rise in input gas prices, linked to international indices, amid the ongoing crisis in the Middle East.
 
"In view of the ongoing crisis in the Middle East, which has resulted in a significant increase in input gas prices linked to international indices, MGL has announced a revision in the prices of CNG," the company said.
 
The CNG increase is particularly significant for Mumbai's taxi and autorickshaw operators, as higher fuel costs can increase their operating expenses even as passengers face higher fares.
 
Delhi CNG Prices Also Climb
Mumbai is not the only major city to see a sharp increase in CNG prices. Indraprastha Gas Ltd (IGL) raised CNG prices in Delhi by ₹3.89/kg from 29 August 2026, taking the price to ₹86.98/kg from ₹83.09.
 
The company attributed the increase to higher international LNG prices following a renewed West Asia crisis and disruptions to gas cargo movements through the Strait of Hormuz.
 
The latest increase has taken the cumulative rise in Delhi CNG prices this year to nearly ₹10/kg. CNG was priced at ₹77.09/kg in Delhi at the beginning of the year.
 
The price had risen by ₹6/kg in four instalments during the second half of May before the latest increase.
 
ATF Price Jumps 5.46%
Air travellers could also eventually feel the impact of higher fuel costs after state-owned oil marketing companies (OMCs) raised aviation turbine fuel (ATF) prices by ₹6.28 per litre, or 5.46%, from 1st September.
 
The price of jet fuel for domestic airlines has increased from ₹115/litre to ₹121.28/litre.
 
This is the second consecutive monthly increase in ATF prices. Rates had already been raised by ₹5/litre in August after being reduced by a similar amount in July.
 
ATF represents a major component of airline operating costs, accounting for around 35%-40% of the overall operating expenditure of Indian airlines.
 
The latest increase is therefore expected to raise fuel costs for domestic carriers and could put pressure on airfares.
 
However, the impact on ticket prices will depend on several factors, including passenger demand, competition and available capacity across airline networks.
 
Commercial LPG Cylinder Price Rises by ₹9.50
State-owned OMCs have also increased the price of 19-kg commercial LPG cylinders by ₹9.50 from Tuesday.
 
Commercial LPG is widely used by hotels, restaurants and other establishments, making the revision relevant to food-service businesses and other commercial users.
 
The increase comes after the government set maximum cooking gas production targets last week for individual public- and private-sector refineries and upstream companies.
 
In an order issued in August, the Union ministry of petroleum and natural gas (MoPNG) specified maximum LPG production levels for 21 refineries and upstream companies, with a combined production potential of 63,810 tonnes a day.
 
West Asia Crisis Adds to Energy Cost Pressures
The latest increases come against the backdrop of continuing disruptions and uncertainty in international energy markets linked to the conflict and tensions in West Asia.
 
Natural gas prices have been particularly affected by movements in international benchmarks and disruptions to LNG cargo flows.
 
In Mumbai, the combination of higher CNG prices and revised auto-rickshaw and taxi fares could directly affect the cost of urban mobility. For businesses, higher commercial LPG prices could raise operating expenses, while airlines face increased fuel costs following the latest ATF revision.
 
The simultaneous increase in several transport and energy-related costs also comes at a time when households and businesses are closely watching their monthly expenditure.
 
While the auto and taxi fare revisions are specific to the MMR, the increases in ATF and commercial LPG apply nationally, while CNG prices have also been revised in other major markets, including Delhi.
 
For Mumbai residents, the immediate impact is clear: the minimum fare for an auto or black-and-yellow taxi has increased, while CNG-powered vehicles will also cost more to operate from 1st September.
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