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Mumbai Autorickshaw Union Demand 40% Rebate On CNG

The prices of CNG and domestic piped natural gas (PNG) increased in Mumbai from midnight on August 2. This is the fifth hike in the prices of CNG and PNG in the city.

Mumbai Autorickshaw Union Demand 40% Rebate On CNG
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SHARES

After Maharashtra government’s silent treatment on the fare hike demand of auto and taxis, the autorickshaw drivers’ union has now demanded a 40 per cent discount on compressed natural gas (CNG) to compensate for the steep rise in the fuel price.

The prices of CNG and domestic piped natural gas (PNG) increased in Mumbai from midnight on August 2. This is the fifth hike in the prices of CNG and PNG in the city.

Hinting at the same, Mumbai Automen Union leader Shashank Sharad Rao has written to the chief minister spelling out their demands.

“We have been told to compulsorily use CNG fuel, which we have done and converted all autos into CNG. But the government has also allowed and encouraged private vehicles to operate on CNG, which has led to an increase in the user base of CNG. Given the huge demand, the government has been forced to import the gas in addition to the local production, which has led to an increase in prices,” Rao was quoted as saying by Mid-day.

The Maharashtra government is a 10 per cent stakeholder in Mahanagar Gas Limited [MGL]. Therefore, the union has written letters to the government and the MGL that the local production of CNG should be available for a cheaper rate for us and being a public transporter, it should be diverted to us on priority. 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. If it is not possible, the government should give us a temporary fare hike so that we could balance our wares, Rao added.

CNG prices have been raised several times in recent months due to rise in import costs.

It is now being sold at INR 86 a kg, which is an increase of INR 6 over its earlier price, while PNG costs INR 52.50 per standard cubic metre (SCM), an increase of INR 4.

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