Government likely to raise auto, taxi fares over steep hike in CNG prices

NEW DELHI: In the wake of hike in CNG prices, Delhi government on Friday night hinted at a hike in auto and taxi fares soon. Sources said “government is likely to hike auto and taxi fares soon due to steep hike in CNG prices in the last two years.”

CNG price in the national capital was today hiked by Rs 1.55 per kg to Rs 39.90 due to higher input cost.

Indraprastha Gas LtdBSE -0.83 % said the selling price of Compressed Natural Gas (CNG) in Delhi, Noida, Greater Noida and Ghaziabad is being raised with effect from midnight tonight due to increased input gas price and related taxes.

The government has already set up a committee comprising senior officials of the Transport Department to suggest hike in auto-rickshaw and taxi fares following persistent demands by various auto-rickshaw and taxi unions.

The unions have been pressing for at least 40 per cent hike in auto and taxi fare citing the rise in CNG prices. “We are actively considering hiking the auto and taxi fare,” said a senior official in the Transport Department.

He, however, ruled out any hike in DTC bus fare. The Delhi Transport CorporationBSE -0.06 % has also been demanding a hike in bus fares arguing that it has been incurring heavy losses due to increase in CNG prices.

Transport Minister Ramakant Goswami had also had a number of meetings with the representatives of auto and taxi unions in the last couple of months during which he assured them of hiking the fare.

Rajender Soni, general secretary of Delhi Auto-rickshaw Chalak Sangh, said the government must hike theauto fare as it is not-feasible for auto-rickshaws and taxis to continue to ply if the fare is not revised. The government must hike the fare, otherwise we will have to stay off the road as it will be difficult for us to continue our service

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