After CNG prices spike, auto and taxi unions demand minimum fare hike

The unions will soon send an official statement with their proposal to the transport department.

Date: July 10, 2024

Soon after the Mahanagar Gas Limited (MGL) announced an increase in the price of CNG gas by Rs 1.5 per kg, the auto-rickshaw unions in Mumbai have also demanded a hike in the minimum fare. Meanwhile, the taxi unions are yet to take a decision on the same.

The auto unions are demanding an increase of Rs 2 in the basic fare for the first one and a half kilometres from Rs 23 to Rs 25. After that for every kilometre, they are asking to increase the rate by Rs 1.57, which will bring it to Rs 16.9 from Rs 15.33. According to autorickshaw associations, the CNG price hike will result in a daily loss of ₹130-150 to drivers.

Union leader said that autorickshaw drivers have to pay for gas and this increase in fare will hit their pocket. Hence there is a need to revise and increase the fare. On the other hand, taxi unions said they too want a hike in the base fare from Rs 28 to Rs 30, but will hold further discussions with members before making a final demand.

The unions will soon send an official statement with their proposal to the transport department. Sources in the regional transport office said any proposal for a fare hike goes to the Mumbai Metropolitan Region Transport Authority (MMRTA), which holds several meetings to study whether the reasons given are valid.

It is pertinent to note that the autorickshaw and taxi fares saw a spike by ₹2 and ₹3 respectively in October 2022. With this, the minimum fare for auto and taxi has increased from ₹21 to ₹23 and ₹25 to ₹28 respectively.

On Monday, July 8, MGL announced that CNG prices in the Mumbai Metropolitan Region (MMR) will increase from ₹73.50/kg to ₹75/kg. The rate has increased as the demand for CNG vehicles rose in the past few years.

The MMR has more than one million CNG vehicles registered, including 400,000 auto rickshaws, 500,000 private cars, 2,400 buses and 70,000 taxis.