20 June,2026 05:05 PM IST | Mumbai | mid-day online correspondent
The union stated that approximately 68 per cent of operating costs are linked to the Consumer Price Index (CPI), while around 18 per cent depend on CNG prices. Representational Pic/File
An auto-rickshaw union has urged the Maharashtra government to act on reported Compressed Natural Gas (CNG) crisis and demanded a fare revision.
In a letter to the state, the union has expressed its gratitude to Maharashtra's Additional Chief Secretary for Transport and Ports, Sanjay Sethi, for holding detailed discussions on June 12, 2026 regarding issues affecting the state's auto-rickshaw industry.
According to the union, the meeting focused on preventing a possible shortage of Compressed Natural Gas (CNG) and identifying practical measures to reduce fuel consumption across the auto-rickshaw sector. Union representatives said that proper planning by the government could help achieve significant savings in CNG usage.
Officials reportedly assured the delegation that discussions would be held with relevant departments to examine the proposals submitted by the union.
The tensions between Iran and the United States have eased, the union stated that concerns over natural gas supplies remain.
The organisation said information received from senior energy industry officials indicates that India's natural gas supply situation continues to be uncertain. India imports a substantial amount of Liquefied Natural Gas (LNG) from Qatar, and the union claims that recent geopolitical developments have affected LNG-related infrastructure and supply chains.
According to the information shared by the union, restoration of damaged LNG infrastructure could take several years, potentially affecting future supply stability.
The union also highlighted what it described as a common misconception that lower crude oil prices automatically result in lower CNG prices.
Representatives argued that crude oil and natural gas markets operate differently and are influenced by separate factors. As a result, a decline in crude oil prices may not necessarily lead to a reduction in CNG rates.
The union pointed to a recent increase in CNG and PNG prices by Pune-based gas distributor MNGL as evidence that gas prices may continue to face upward pressure despite fluctuations in crude oil markets.
Another major issue discussed during the meeting was the demand for an increase in auto-rickshaw fares.
The union stated that approximately 68 per cent of operating costs are linked to the Consumer Price Index (CPI), while around 18 per cent depend on CNG prices. The remaining costs include vehicle maintenance, insurance, permit renewals, uniforms, depreciation, taxes and interest rates.
Representatives informed the government that a formal proposal for fare revision has already been submitted to the Mumbai Metropolitan Region Transport Authority (MMRTA) and other transport authorities.
According to the union, transport officials have acknowledged receipt of the proposal and assured them that the matter will be examined and placed before the MMRTA at the earliest opportunity.
The union also referred to recommendations made by the B. C. Khatua Committee, which suggest annual fare revisions based on the Consumer Price Index. The committee reportedly recommended implementing fare adjustments from 1 July each year when the calculated increase exceeds 50 paise per kilometre.
Union leaders claim that if the proposed fare revision is not implemented from July 1, 2026, Auto-rickshaw operators could suffer substantial financial losses.
Based on their calculations, the recommended fare adjustment amounts to Rs 1.08 per kilometre. Assuming an average daily operation of 114 kilometres, each rickshaw operator could lose approximately Rs 124.20 per day.
With an estimated 550,000 Auto-rickshaws operating across the Mumbai Metropolitan Region (MMR), the union estimates total daily losses could exceed Rs 68.3 million if the revised fare structure is not introduced.
The union has urged the Maharashtra government and transport authorities to consider the fare revision request sympathetically and take timely action to protect the livelihoods of auto-rickshaw driver-owners.
The organisation concluded by once again thanking the state government for providing an opportunity for dialogue and expressing hope that the concerns raised during the meeting will receive prompt attention.
