No cut in auto, bus fares after reduction in CNG price

Delhi government on Friday ruled out any cut in autorickshaw and bus fares in the coming days despite a steep reduction of Rs 14.90 per kg in CNG price in the national capital, even as Chief Minister Arvind Kejriwal announced annual revision of auto fares based on inflation.

"There is no such plan to cut auto and bus fares in near future," said a government official here today. CNG price in the national capital was today cut by Rs 14.90 per kg and cooking gas piped into kitchens by Rs 5 per unit with effect from midnight tonight. Earlier in the day, Kejriwal had announced annual revision of auto fares based on inflation. "On April 1 every year, government will revise auto fares," Kejriwal had said addressing a meeting of thousands of auto drivers at Burari here today.

"If inflation increases, auto fares would then be hiked. If inflation declines, auto fares would be reduced by the government," the CM had added. Compressed Natural Gas, or CNG, will cost Rs 35.20 per kg from tomorrow as against the current rate of Rs 50.10 per kg. Rates of piped natural gas (PNG) that households use for cooking, was cut by Rs 5 per standard cubic meters (scm) per day.

This is the first reduction in fuel rates in almost six years. CNG rate was cut in March 2008 when prices were cut by 30 paise following a reduction in excise duty. However, the relief may be temporary relief, as the domestic natural gas prices will almost be doubled to USD 8-8.2 from April 1. The rate hike may translate into a CNG price increase of Rs 10.6 per kg and PNG rates of Rs 8/scm. There are nearly 80,000 auto rickshaws running in the capital.