NEW DELHI: Auto-rickshaw and taxi unions in Delhi have opposed the latest increase in CNG prices, warning that rising fuel and operating costs are putting additional pressure on drivers. The unions have also said they do not want to pass the increased cost on to commuters.
The latest revision by Indraprastha Gas Limited (IGL) has raised the price of CNG in Delhi by Rs 3.89 per kg, with the new rate coming into effect on August 29. The increase has pushed the Delhi CNG price to Rs 86.98 per kg.
Unions oppose another increase
Rajendra Soni, general secretary of the Auto Rickshaw Association and Delhi Pradesh Taxi Union, said CNG prices had already increased by around Rs 10-12 over the past two-and-a-half to three months.
According to Soni, transport unions have repeatedly approached the Delhi government seeking a meeting to discuss the financial difficulties faced by auto and taxi drivers. He said their requests had not received a satisfactory response.
The unions are concerned that continued increases in fuel prices could make it increasingly difficult for drivers to maintain their earnings without either raising fares or cutting into their already limited margins.
CNG reaches Rs 86.98 per kg in Delhi
IGL's latest increase took effect from 6 am on Saturday. CNG now costs Rs 86.98 per kg in Delhi, compared with Rs 83.09 previously.
Prices are higher in several neighbouring NCR cities. CNG is priced at Rs 95.59 per kg in Noida and Ghaziabad, Rs 95.47 in Meerut and Rs 92.01 in Gurugram. Differences in state taxes contribute to the variation in prices across the region.
The latest revision is the fifth CNG price increase in the region this year.
Why has IGL increased CNG prices?
IGL has attributed the latest increase to higher international gas costs.
The company said international spot LNG prices have risen sharply amid disruptions to global energy markets linked to the conflict in West Asia. Disruptions to LNG cargo movements through the Strait of Hormuz, along with stronger European demand ahead of winter, have increased pressure on international gas prices.
IGL said the Rs 3.89-per-kg increase was a calibrated adjustment intended to partially offset higher input costs while maintaining an uninterrupted gas supply.
Drivers worry about commuters
For auto-rickshaw and taxi drivers, fuel costs are among the biggest daily operating expenses. A sustained rise in CNG prices can directly affect their take-home earnings.
However, the unions say raising passenger fares is not the preferred solution.
Their concern is that higher fares would ultimately place an additional burden on commuters, particularly those who rely on autos and taxis for daily travel.
"We do not want to burden the people of Delhi," Soni said while highlighting the repeated increases in CNG prices and the unions' attempts to meet government representatives.
Fare revision could become a key issue
The latest CNG increase is likely to intensify discussions over whether auto and taxi fares should be revised.
Transport operators have to balance higher fuel expenses against regulated or negotiated fares. If fares remain unchanged while fuel prices rise, drivers face shrinking margins. If fares are increased, passengers could face higher commuting costs.
The unions are therefore seeking government intervention rather than immediately transferring the additional expense to passengers.
Impact could extend beyond autos and taxis
The effect of higher CNG prices is not limited to passenger transport.
A large number of commercial vehicles and goods carriers in Delhi-NCR also use CNG. Higher fuel expenses could eventually increase transportation costs for businesses, potentially affecting freight rates and the prices of goods and services.
For commuters, the immediate concern is whether the latest fuel increase will eventually translate into higher auto and taxi fares.
Unions seek government response
Transport unions are now pressing the Delhi government to address their concerns and hold discussions with representatives of the sector.
Their demand comes as CNG prices continue to rise amid international energy-market volatility.
For now, drivers are absorbing the additional cost, but continued increases could make that increasingly difficult. The unions' opposition reflects a broader dilemma facing Delhi's public transport sector: how to protect drivers' incomes without making everyday travel more expensive for passengers.
The latest CNG hike has therefore put renewed focus on the need for a sustainable fare and fuel-cost policy for Delhi's auto-rickshaw and taxi operators.
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