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Faced with hike, auto unions threaten strike
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NEW DELHI: Commuting by public transport in the Capital could soon get dearer. The Centre's decision to increase the price of government-controlled gas by nearly 100 per cent on Wednesday is going to have a direct bearing on prices of compressed natural gas (CNG), which is likely to increase by up to Rs 6 per kg. All public transport in Delhi, barring Delhi Metro, runs on CNG and the steep increase in prices could force the government to pass some amount of the burden to the common man, say sources.
Even as Indraprastha Gas Limited (IGL) refused to comment on the extent of price hike on CNG, claiming that the implications are "still being worked out'', sources said it could be up to Rs 6 per kg one of the highest one-time hike ever as government-controlled gas comprises about 92 per cent of IGL's raw material.
Such a steep increase in CNG rates will jack up operating costs for autos andbuses both DTC and Bluelines and taxis. The auto unions, who have already been demanding a fare hike, say it will be impossible to operate if the CNG prices increase any further. "We will be forced to go on strike to oppose any further increase in CNG prices. Our operating costs are already very high, and to match this kind of price rise, the government needs to revise fares to Rs 30 for the first kilometre and Rs 10/km thereafter,'' said Rajendra Soni, general secretary of Dilli Autorickshaw Chalak Sangha. On an average, an auto driver spends Rs 100-120 per day on CNG. Another Rs 400 is paid as rent for the vehicle.
Even Blueline operators say they are already stretched because of the government's policies and will not be able to take any further strain. "A Blueline bus uses CNG worth Rs 1,800 daily. If we pay even Rs 400 more, it will be impossible to recover our running costs. We will be forced to put the buses off the roads,'' said Shyam Lal Gola of Delhi Bus Ekta Manch.
For state-run DTC, even a 20 per cent increase in CNG prices will add to the huge losses being suffered by the corporation. DTC reportedly spends about Rs 40-50 lakh per day on CNG for its fleet of about 4,000 buses which run 6-7 lakh kms daily. Even a 20 per cent hike in CNG rates would reportedly translate into a loss of Rs 36-37 crore for the corporation, which it might not be able to bear. Furthermore, with the new buses being inducted into the fleet, the losses for DTC are already going to increase due to heavy capital costs.
Sources, however, said the government might not increase bus fares. Section 67 of the Motor Vehicle Act gives the state government the power to decide fares of public transport. Delhi doesn't have any independent regulatory body for this. "But bus fares were increased by almost 50% last year. Moreover, Bluelines are on their way out and the fuel component is less than 10 per cent of DTC's running costs. Over 80 per cent is that of manpower. The government is, however, considering a revision of auto fares,'' said sources.
Even as Indraprastha Gas Limited (IGL) refused to comment on the extent of price hike on CNG, claiming that the implications are "still being worked out'', sources said it could be up to Rs 6 per kg one of the highest one-time hike ever as government-controlled gas comprises about 92 per cent of IGL's raw material.
Such a steep increase in CNG rates will jack up operating costs for autos andbuses both DTC and Bluelines and taxis. The auto unions, who have already been demanding a fare hike, say it will be impossible to operate if the CNG prices increase any further. "We will be forced to go on strike to oppose any further increase in CNG prices. Our operating costs are already very high, and to match this kind of price rise, the government needs to revise fares to Rs 30 for the first kilometre and Rs 10/km thereafter,'' said Rajendra Soni, general secretary of Dilli Autorickshaw Chalak Sangha. On an average, an auto driver spends Rs 100-120 per day on CNG. Another Rs 400 is paid as rent for the vehicle.
Even Blueline operators say they are already stretched because of the government's policies and will not be able to take any further strain. "A Blueline bus uses CNG worth Rs 1,800 daily. If we pay even Rs 400 more, it will be impossible to recover our running costs. We will be forced to put the buses off the roads,'' said Shyam Lal Gola of Delhi Bus Ekta Manch.
For state-run DTC, even a 20 per cent increase in CNG prices will add to the huge losses being suffered by the corporation. DTC reportedly spends about Rs 40-50 lakh per day on CNG for its fleet of about 4,000 buses which run 6-7 lakh kms daily. Even a 20 per cent hike in CNG rates would reportedly translate into a loss of Rs 36-37 crore for the corporation, which it might not be able to bear. Furthermore, with the new buses being inducted into the fleet, the losses for DTC are already going to increase due to heavy capital costs.
Sources, however, said the government might not increase bus fares. Section 67 of the Motor Vehicle Act gives the state government the power to decide fares of public transport. Delhi doesn't have any independent regulatory body for this. "But bus fares were increased by almost 50% last year. Moreover, Bluelines are on their way out and the fuel component is less than 10 per cent of DTC's running costs. Over 80 per cent is that of manpower. The government is, however, considering a revision of auto fares,'' said sources.
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