Autorickshaw unions demand fare hike after CNG price rise

Mumbai auto unions demand fare hike after CNG price increase by ₹1.50/kg; taxi unions to discuss. Rising expenses prompt call for base fare increase.

Mumbai: A day after Mahanagar Gas Limited (MGL) increased the price of CNG by ₹1.50 per kg, autorickshaw unions on Monday demanded a fare hike, while taxi unions are yet to discuss further course of action with their members.

Thane, India - July 09, 2024: CNG gas has increased by 1.50 paise from Tuesday, Drivers are seen filling vehicles with CNG gas at Thane CNG pump , in Thane,in Mumbai, India, on, Tuesday, July 09, 2024. ( Praful Gangurde / HT Photo )

The auto unions are asking for the base fare for the first 1.5 kilometres to be hiked from ₹23 to ₹25. For every kilometre after that, they’re asking for the rate to increase from ₹15.33 to ₹16.9.

The hike per kilometre is based on the increasing consumer price index, which is one of the major factors in deciding whether there is a need for a hike in auto/taxi fares, for which a formula is in place. Other factors include the vehicle’s capital cost, maintenance and repair costs, insurance, and taxes.

According to the autorickshaw unions, the CNG price hike effectively means drivers will lose ₹130-150 daily. “The consumer price index has also gone up along with other expenditure. An autorickshaw needs to fill gas, and this hike will hurt the drivers’ pockets. There is, therefore, a need to revise and hike autorickshaw fares,” said union leader Thampy Kurien.

Taxi unions said that they, too, want a base fare hike from ₹28 to ₹30, but they will have further discussions with members before making a final demand. “The fact remains that expenses have gone up over the years, which is concerning,” said taxi union leader Prem Singh.

The unions will soon send an official representation with their proposal to the transport department. Sources in the regional transport office said that any fare hike proposal goes to the Mumbai Metropolitan Region Transport Authority (MMRTA), which has multiple meetings to study whether the reasons provided are valid before taking a final call.

The MMRTA had last hiked autorickshaw and taxi fares in October 2022 by ₹2 and ₹3, respectively. The minimum fares for autos and taxis went up from ₹21 to ₹23 and ₹25 to ₹28, respectively.

On July 8, MGL announced that the prices of CNG will go up from ₹73.50/kg to ₹75/kg in the Mumbai Metropolitan Region (MMR). This comes at a time when demand for CNG vehicles is increasing. There are over a million CNG vehicles registered in MMR, including 400,000 autorickshaws, 500,000 private cars, 2,400 buses, and 70,000 taxis.

MGL attributed the hike to the increasing demand for CNG and a shortfall in domestic gas allocation, for which it is sourcing additional requirements at market-priced natural gas.