Chennai's Auto Drivers Demand Fare Hike Amidst CNG Price Surge

With CNG prices hitting Rs 95 per kg in Chennai, auto-rickshaw drivers call for a revision in meter fares to sustain operations. Rising fuel costs, driven by global market tensions, challenge drivers' livelihoods despite government tax cuts aimed at mitigating consumer impacts.

Effective today, May 26, the retail price of Compressed Natural Gas (CNG) in Chennai has risen to Rs 95 per kilogram. This has sparked demands from auto-rickshaw drivers for an immediate revision of meter fares to cope with the increased costs.

While CNG prices remained stable in April and May compared to other cities like Delhi, drivers argue that the current fare structures are unsustainable without adjustments. Auto drivers express concerns that the stability of their livelihoods is at risk if meter fares aren't revised in response to rising fuel costs.

Veerapathiran, a local auto driver, stated to ANI, "The fare needs to be stable if fuel prices continue to rise." The operational costs due to soaring fuel prices are particularly challenging for those relying on CNG-operated vehicles for their income. The hike in fuel prices is driven by international factors such as crude oil rates and ongoing tensions in West Asia.

The Indian government has reduced excise duty on petrol and diesel to cushion the impact on consumers, sacrificing nearly Rs 14,000 crore in tax revenue. However, transport and logistics expenses are set to increase further, possibly leading to inflationary pressures across various sectors.

The announcement by Sujata Sharma, Joint Secretary in the Petroleum Ministry, highlighted the government's efforts to manage the economic repercussions of global energy price hikes. Despite initiatives to reduce consumer burden, the cascading effects on transportation costs and household expenses remain a key concern.