Auto, taxi unions demand fare hike, threaten strike over CNG price rise

Transport unions in the national capital have demanded an immediate increase in autorickshaw and taxi fares after Indraprastha Gas Limited (IGL) raised the price of compressed natural gas (CNG) by ₹3.89 per kg from 6 a.m. on Saturday in Delhi-NCR. The unions have warned that drivers will go on strike on September 9 if the government fails to revise fares within a week.

CNG now costs ₹86.98 per kg in Delhi, ₹95.59 in Noida, ₹95.59 in Ghaziabad, and ₹92.01 in Gurugram. The latest hike takes the cumulative increase in Delhi CNG prices this year to nearly ₹10 per kg. It was priced at ₹77.09 per kg at the beginning of the year. The price was raised by ₹6 per kg in four instalments in the second half of May. There has been no increase in the price of piped natural gas supplied to homes for cooking.

“CNG prices have been rising over the past two to three months. However, fares have not been revised proportionately. If the fares are not increased, we will hold a strike on September 9,” Auto Rickshaw Association and Delhi Pradesh Taxi Union general secretary Rajendra Soni told reporters.

Seeking the Delhi government’s intervention, he urged Chief Minister Rekha Gupta to either hike fares or provide them with subsidy. “Other States like Maharashtra and Gujarat have already revised fares,” Mr. Soni added.

Rajendra Kapoor, president, All India Motor and Goods Transport Association, said the hike will not only cause a rise in food costs but prices of essential commodities as well. “Small vehicles used to transport vegetables and other commodities use CNG. This will lead to a rise in transportation costs, kicking up prices of essential commodities,” he said.

Baljinder Singh, a taxi service owner, said, “We have contracts with schools and companies at fixed rates, and the government knows that we cannot change those contractual obligations. We are expected to absorb the entire hike in operating costs,” he said.

Delhi Taxi, Tourist Transporters and Tour Operators Association president Sanjay Samrat said transporters would stage a demonstration at Jantar Mantar after September 15. “We have approached the police seeking permission for a protest, but have been told it could be held only after the BRICS meeting. We will demand the resignation of Union Ministers Nitin Gadkari (Road Transport & Highways) and Hardeep Puri (Petroleum & Natural Gas),” he said.

West Asia crisis

IGL, in a statement, attributed the hike to a sharp rise in global liquefied natural gas (LNG) prices following a renewed West Asia crisis and disruptions to gas cargo movements through the Strait of Hormuz. It added that with global LNG prices remaining elevated and the cost impact becoming increasingly significant, a calibrated revision of ₹3.89 per kg has now become necessary to partially offset the increase in input gas cost while ensuring continuity and reliability of CNG supplies.