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Economy News, Latest Economic News Today | The HinduBusinessLine

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Auto, taxi fares in Delhi, Mumbai may rise ₹1–₹2 on CNG p...
2026-05-15 · via Economy News, Latest Economic News Today | The HinduBusinessLine

Commuters in Delhi and Mumbai could soon pay ₹1–₹2 more for auto-rickshaw and taxi rides as transport unions respond to the latest ₹2-per-kg increase in compressed natural gas (CNG) prices, warning that drivers can no longer absorb what could amount to an additional ₹3,200–₹4,800 in monthly operating costs for vehicles covering 120–180 kilometres a day.

“The expenses on fuel have increased by ₹1.03 per kilometre for auto-rickshaw drivers. The consumer price index has also gone up, increasing overall running costs. We have therefore demanded a fare hike from the government,” said Thampi Kurien, General Secretary of the Mumbai Rickshawmen’s Union.

In Mumbai, the response has already become formal. The Mumbai Rickshawmen’s Union has written to the Mumbai Metropolitan Region Transport Authority (MMRTA) seeking a ₹1 increase in the minimum autorickshaw fare, from ₹26 to ₹27. The May 15 letter says operating costs have risen from ₹17.14 per kilometre to ₹18.17 per kilometre, an increase of ₹1.03 per km, after CNG prices increased from ₹78 per kg at the time of the previous fare revision in February 2025 to ₹84 per kg.

The letter, based on the B.C. Khatua Committee formula, also notes that Mumbai’s consumer price index (base year 2001) has climbed from 375.39 to 401.871, strengthening the union’s case for a fare revision.

For drivers covering 120–180 kilometres a day, the latest increase translates into an additional ₹124–₹185 in daily operating costs, or roughly ₹3,200–₹4,800 over a 26-day working month. Over a year, the added burden could reach ₹38,000–₹58,000.

Mumbai’s kaali-peeli (black-and-yellow) taxi unions are also pressing for an immediate fare revision and are expected to seek an increase of around ₹2 to offset higher fuel and maintenance costs. The CNG price hike affects around 4.7 lakh auto-rickshaws and 1.6 lakh taxis in the Mumbai Metropolitan Region alone.

In Delhi, Indraprastha Gas Ltd (IGL) has also increased CNG prices by ₹2 per kg, taking retail rates to nearly ₹80 per kg. Delhi, India’s largest CNG mobility market, has more than one lakh auto-rickshaws and a large fleet of CNG-powered taxis and app-based vehicles facing similar cost pressures.

“CNG prices in Delhi have gone up by around ₹2 per kilogram in the last month. With maintenance and household expenses also rising, drivers are finding it difficult to sustain operations without a fare revision,” said Rajendra Soni, General Secretary of the Delhi Auto Rickshaw Sangh.

Published on May 15, 2026