The retail price of Compressed Natural Gas (CNG) in Chennai has been raised to Rs 95 per kilogram with effect from May 26. In response, auto-rickshaw drivers in the city are calling for an immediate and consistent revision of meter fares to cope with rising operating expenses. Although CNG prices have remained unchanged during April and May, unlike recent increases seen in cities such as Delhi, Chennai’s auto drivers argue that the current fare system is no longer sufficient to support their livelihoods. They believe that any increase in fuel costs should be matched by a corresponding update in official passenger fares and a stable meter pricing structure.

Speaking to ANI, auto driver Veerapathiran said that while the government may continue to raise fuel prices, authorities must also ensure a fair and stable meter fare system. He added that additional hikes in fuel rates would severely affect drivers’ earnings, but they would be willing to accept higher fuel costs if fares were revised appropriately. Drivers also highlighted that increasing fuel prices are adding financial pressure on those who rely on CNG-powered autos and commercial vehicles for their daily income.

Fuel prices in India are influenced by global crude oil and natural gas prices, currency exchange rates, and local taxes. Recent increases have been linked to instability in international energy markets caused by tensions in West Asia and concerns over supply disruptions. The repeated rise in CNG, petrol, and diesel prices is expected to increase transportation and logistics costs, potentially contributing to inflation. Consumers may also experience higher commuting expenses and increased prices of goods transported by road.

The central government stated that it has sacrificed nearly Rs 14,000 crore in tax revenue by reducing excise duty on petrol and diesel to protect consumers from surging fuel prices. According to Sujata Sharma, Joint Secretary in the Petroleum Ministry, the Centre cut excise duty by Rs 10 per litre on both petrol and diesel on March 27 following a sharp rise in global crude oil prices triggered by tensions in West Asia.

Disclaimer: This image is taken from ANI.