The Delhi government has issued a notification, intimating new auto-taxi fare rates. The base fare for autorickshaws has been hiked from Rs 25 to Rs 30. After that, the rate will be Rs 11 per kilometre instead of the present Rs 9.5.
Similarly, Non-AC taxis will now charge passengers a minimum of Rs 40 and after that, the fare will be Rs 17 per kilometre instead of the initial Rs 14 per kilometre. The fare for AC taxis has also been increased from Rs 16 per kilometre to Rs 20 per kilometre.
This change in fare was made in response to the demands of auto and taxi drivers due to the increasing prices of Compressed Natural Gas (CNG). A committee was formed by the Delhi government to review the fare and the change was made based on the committee's report.
The CNG price in Delhi was hiked to Rs 79.56 per Kg in December last year. The cost is higher in NCR. Indraprastha Gas Limited (IGL) increased the CNG price to Rs.82.12 per Kg in Noida, Greater Noida, and Ghaziabad. In Gurugram, CNG now costs Rs.87.89 per kg.
The Kirit Parikh Committee, which was formed to recommend fair price of gas to the end consumer and a "market-oriented, transparent and reliable pricing regime", in December had recommended that the Union government moderates the excise duty it levies on CNG till such time that the environment-friendly natural gas is included in the one-nation-one-tax GST regime.
While the central government does not levy excise duty on natural gas when sold in gaseous form, it charges a 14 per cent tax on compressed natural gas (CNG). States levy VAT as high as 24.5 per cent on gas.
The Parikh Committee in its report to the Oil Ministry also suggested that "gas should be brought under the GST regime".