World Connect News
[ad_1]
Lakhs of daily commuters, cab drivers and private vehicle owners in the National Capital Region (Delhi-NCR) have faced another big blow of inflation. Major gas distribution company Indraprastha Gas Limited (IGL) has significantly increased the retail prices of Compressed Natural Gas (CNG) by ₹3.89 per kg in Delhi and surrounding satellite cities. The revised rates have come into effect with immediate effect. This step has been taken following global changes in domestic gas supply and input gas cost. This sharp increase in CNG prices will not only spoil the fuel budget of private car owners but there is also a strong possibility of increase in the fares of public transport, auto rickshaws, app-based cabs and school vans.
According to the new price list released by Indraprastha Gas Limited, CNG prices have reached a new record level in the entire NCR including the national capital Delhi. Now the retail price of CNG within Delhi has increased to around ₹79.50 to ₹80 per kg, which was earlier around ₹75.09 to ₹76. Whereas in Noida, Greater Noida and Ghaziabad of Uttar Pradesh, due to difference in VAT and local charges, the rates have crossed ₹ 84 to ₹ 85 per kg. A proportionate increase in CNG rates has also been recorded in Gurugram, Rewari and Karnal of Haryana. This price revision is sure to lead to a direct increase in the monthly travel cost of lakhs of commuters working in various areas of Delhi-NCR.
Various auto-taxi unions and driver unions of Delhi-NCR have reacted sharply after the sudden increase in CNG prices by ₹3.89 per kg. Cab and auto drivers say their daily earnings were already limited due to high commission rates, vehicle insurance and maintenance expenses. Now due to CNG becoming expensive, there will be a direct cut of ₹ 100 to ₹ 150 in their daily savings. The unions have started a formal demand from the Delhi government and state transport authorities to immediately increase the meter fare and base fare of autos by 15 to 20 percent. If the administration does not do fair revision soon, drivers are also warning of strike and protest.
The biggest concern for daily office commuters is that ride-hailing aggregator companies like Ola, Uber and Rapido may also soon revise their per kilometer fares and peak-hour surge pricing. Most commercial cabs operate on CNG only. With rising fuel costs, cab aggregators may increase their platform charges and per kilometer rates by ₹1.50 to ₹2.50. Additionally, rising operating costs of light commercial vehicles (LCVs) operated by delivery and logistics companies may also increase the cost of e-commerce and quick commerce delivery services in Delhi-NCR.
The impact of the increase in CNG prices will not be limited only to daily commuters but it will also have a direct financial burden on the parents of school children. Private school bus associations and van operators of Delhi, Noida and Gurugram have already indicated an increase in monthly bus fees. Monthly fees for school vans and feeder buses may increase by ₹200 to ₹400 per student. Additionally, for those who travel 50 to 70 kilometers daily in their personal CNG vehicles, their monthly fuel bill will increase by ₹1,000 to ₹1,500, affecting the monthly financial balance of middle-class families.
Energy sector experts believe that the main reasons behind this latest increase in CNG prices are the reduction in domestic gas allocation and increase in the import price of Liquefied Natural Gas (LNG) internationally. Under the new pricing policy of the Central Government, the quota of cheap Administrative Price Mechanism (APM) gas available to City Gas Distribution (CGD) companies has been limited. Due to this, distribution companies like IGL have to buy expensive imported gas from the open and international markets to meet their demand. The direct burden of this additional input cost is being transferred by the companies to the end consumers.