CNG price-hike: Delhi auto unions seek immediate rise in fares
What's the story
Transport unions in Delhi have demanded an immediate increase in autorickshaw fares, threatening a strike on September 9 if their demand is not met. The demand comes after Indraprastha Gas Ltd (IGL) announced a hike in Compressed Natural Gas (CNG) prices by ₹3.89 per kg this morning. The new price is now ₹86.98 per kg in the national capital, up from ₹83.09 earlier.
Strike threat
Revise auto, taxi fares within a week: Union leader
Rajendra Soni, General Secretary of Auto Rickshaw Association and Delhi Pradesh Taxi Union, said the Delhi government should revise auto and taxi fares within a week.
He argued that the recent hike in CNG prices has put a financial burden on drivers.
Soni also noted that CNG prices have been rising over the past few months by some ₹10-11 cumulatively.
Price explanation
IGL explains reasons for price hike
IGL attributed the CNG price hike to rising imported LNG prices amid the West Asia crisis and disruptions in LNG cargo movements through the Strait of Hormuz.
The company said a large portion of input gas for CNG was being sourced from imported spot LNG to meet growing demand.
It also assured that Delhi's CNG retail price remains among the most economical in gas-importing countries.
Political response
Political reactions to CNG price hike
The CNG price hike also drew political criticism.
BJP national spokesperson Syed Shahnawaz Hussain defended the increase, citing the global situation including the closure of the Strait of Hormuz and US-Iran tensions.
However, CPI(M) leader Chigurupati Babu Rao criticized the government over this decision, saying it would burden passengers and raise costs in agriculture, industry, transport and essential commodities.