CNG, PNG prices hiked, auto unions demand immediate rollback

In a major mid poll decision, Indraprastha Gas Limited (IGL) on Friday announced a hike of Rs 2.95 per kg in the CNG prices and Rs 1 per unit in PNG prices to be effective from midnight. The new prices of CNG for consumers will be Rs 38.15 per kg in Delhi and Rs 43.50 per kg in Noida, Greater Noida and Ghaziabad due to differential taxation.

‘We demand an immediate rollback of the recent increase in CNG price hike. Why are the authorities taking such decisions when election code is applicable in the entire country,’ said Rajinder Soni, general secretary of Delhi Pradesh Taxi and Auto Union. ‘We will not hike auto fares as commuters are already suffering from price rise,’ added Soni. Similar views were expressed by Rakesh Sood of Bharatiya Private Taxi Mazdoor Union. ‘We are facing tough competition from e-rickshaws which are exempted from license and fee. Our business is already hit in the capital. We will protest before L-G and demand immediate roll back,’ he added. There are around 2.5 lakh CNG run commercial vehicles in the city. Auto unions are hesitating from demanding fare hike because the government had revised auto fares on 5 May, 2013, when CNG price was Rs 35.1 per kg. The price of CNG was increased by IGL three times to it maximum at Rs 50.1 per kg on 27 December, 2013, but revised downward to Rs 35.2 per kg on 8 February 2014.

‘We are forced to revise the retail price of CNG and PNG mainly due to increase in the overall input cost of natural gas being sourced by us. Since there has been no change in the domestic gas allocation to IGL and is expected to remain at existing level in the near future as well, the increase in gas consumption is being met through higher priced imported R-LNG,’ said an IGL spokesperson. 

He, however, defended the decision by explaining that the increase would be 8 paise per km, for taxi it would be 13 paise per km and in case of buses, the increase would be 80 paise per km, which translates to just over one paisa per passenger – km. The new consumer price of PNG to the households in Delhi is also being revised from Rs 24.50 per scm to Rs. 25.50 per scm up to consumption of 36 scm in two months with effect from 3 May. Beyond consumption of 36 scm in two months, the applicable rate in Delhi would be Rs 48 per scm. The IGL spokesperson also claimed that even now CNG would offer over 61 per cent savings towards the running cost when compared to petrol driven vehicles at the current prices in Delhi. When compared to diesel driven vehicles, the economics in favour of CNG at revised price would be over 31 per cent in Delhi.