Tuesday, 02 January 2024 12:17 GMT

CNG Price Hike In Delhi: Autorickshaw Unions Demand Higher Fare Rate, Threaten Strike If Demands Unmet


(MENAFN- Live Mint) CNG price hike in Delhi: From Saturday onwards, the price of CNG in Delhi and adjoining cities witnessed a hike of ₹3.89 per kg, as confirmed by Indraprastha Gas Ltd. Following the price hike, the national capital's transport bodies demanded an immediate hike in autorickshaw fares. The bodies also warned of a strike on September 9 if their demand was not met.

Auto unions warn of strike after CNG price hike

Auto Rickshaw Association and Delhi Pradesh Taxi Union General Secretary Rajendra Soni said, as quoted by news agency PTI, "The Delhi government should increase auto and taxi fares with immediate effect within one week, as CNG prices were increased by ₹3.89 this morning, which has suddenly increased the financial burden on poor drivers."

CNG prices have been rising over the last two to three months, he remarked.

"The government should increase the fares at the earliest or provide a subsidy on CNG prices. If the fares are not increased, we will hold a strike on September 9," Soni said.

The All India Motor and Goods Transport Association also flagged the increase in CNG prices.

"The sudden increase of ₹3.89 per kg in CNG prices across Delhi-NCR is not merely a matter of higher fuel costs. It will have a direct impact on the pockets of the common man, the transport industry and ultimately the prices of essential commodities," said Rajendra Kapoor, President, All India Motor and Goods Transport Association.

"With this hike, the price of CNG in Delhi has now risen to ₹86.98 per kg," he added.

Also Read | Bad news for CNG users in Delhi! Price hiked by ₹3.89: Check new rates CNG price on Saturday

This comes after Indraprastha Gas Limited (IGL) announced a calibrated price revision of ₹3.89 per kg for Compressed Natural Gas (CNG) in Delhi, effective from 6:00 AM on August 29, according to the IGL press release.

The adjustment comes as global Spot LNG prices nearly double due to escalating conflicts in West Asia causing disruption in LNG cargo movements through the Strait of Hormuz.

A revision of ₹3.89 per kg takes effect at 6:00 AM on August 29, 2026, to partially offset rising input gas costs and ensure uninterrupted supply.

The revision comes after multiple hikes in recent months. In May, CNG prices were hiked by ₹6 across four separate revisions in less than 15 days.

Also Read | Indraprastha Gas share price jumps 6% on CNG price hike CNG prices to come down after US-Iran war?

Commenting on the recent CNG price hike, BJP national spokesperson Syed Shahnawaz Hussain said on Saturday that the price rise was due to the ongoing geopolitical tensions between Iran and the US.

He told ANI, "The prevailing global situation, including the closure of the Strait of Hormuz and the tensions between the US and Iran, impacts markets worldwide, and India is affected as well. Since we rely heavily on imports, a shortage of CNG creates difficulties; that is why prices have risen slightly. Once the situation normalises, prices will come down."

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