Unions say price cut not enough to make up for hike in CNG prices in past year
Taxi and autorickshaw drivers have ruled out the possibility of any fare cut. File pic
Will Mumbai’s taxis and autos that run on compressed natural gas pass on the gas tariff cut onto the consumers? No, said both the stakeholders, citing that the series of CNG fuel hikes had pushed them to the brink and the recent fare cut is not sufficient to save enough.
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From Friday, CNG prices fell substantially by R6 per kg and now stands at Rs 60 per kg. The dip comes following the Maharashtra government’s decision to reduce value added tax (VAT) on CNG from 13.5 per cent to 3 per cent, making CNG cheaper across the state from April 1. The move will benefit auto rickshaw and taxi drivers, passenger vehicles as well as citizens.
However, cabbies and auto drivers in the city said that the CNG tariff cut is not enough for them to lower the fares. CNG prices have risen six times in 2021, hiking the cost by R14, due to rise in import costs, shortfall in domestic gas allocation, which in turn led to sourcing additional market priced natural gas to cater to the increasing requirement of CNG and domestic PNG segments.
“We have been writing to the government stating that we have been operating in losses and demanded that our basic cab fare should have been increased to R30 instead of R25. With the tariff cut now, there may be a margin, but even with this we can barely manage to just brush through and sustain. There is no question of slashing the taxi fares in Mumbai,” Mumbai Taximen’s Union General Secretary Anthony L Quadros told mid-day. The minimum fare of kaali peeli cabs was revised from Rs 22 to s on March 1, 2021.
Auto unions resonated similar feelings. “Nothing happens because of a 10 per cent tariff cut. The government has made CNG a compulsion for us. We were the first ones to get converted in the city. After that the government allowed private vehicles to be converted into CNG, which led to a spike in demand and prices spiralled. The local production of CNG should be diverted to us by the Maharashtra government, which is also a stakeholder. Once this is done, the prices of CNG for our category will automatically come down. We, as first stakeholders and public transport, should be offered CNG at the production cost,” Mumbai Automen Union leader Shashank Sharad Rao said.
Veteran consumer activist Shirish Deshpande said, “There’s a tariff fixation formula, as per that if the change is beyond certain percent only then fare can be changed.”
Uber hikes fare
Meanwhile, Uber India on Friday announced a 15 per cent fare hike in Mumbai with immediate effect due to rise in fuel prices. This is the second hike within one year, as the fares were raised in July 2021 earlier. “We listened to feedback from drivers and understood that the current rise in fuel prices is causing concern. To help cushion drivers from the impact of spike in fuel prices, Uber is raising trip fares in Mumbai by 15 per cent. Over the coming weeks, we will continue to track fuel price movements and will take further steps as needed,” said Nitish Bhushan, head of operations, Uber India and South Asia.
Rs 60
Price per kg of CNG from Friday
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