Mumbai hikes auto-rickshaw base fare to Rs 21, taxi to Rs 25 amid fuel price rise

Amid rising fuel prices, Mumbai Metropolitan Region Transport Authority (MMRTA) on Monday, hiked fares of auto-rickshaws and taxis (kaali-peelis) by Rs 3 each. With the hike, base fare of auto-rickshaws has increased from Rs 18 to Rs 21, while those of taxis have increased from Rs 22 to Rs 25.  As of date, Petrol prices stood at Rs 97/litre while diesel prices stood at Rs 88.06/litre in the city.

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Dharmendra Pradhan: 'Two reasons for fuel prices'

On Sunday, Union Petroleum Minister Dharmendra Pradhan explained two main reasons for the unabated rise in petrol and diesel. Pradhan explained that the international reduction in fuel prices and the COVID-19 pandemic was the reason for the rise in fuel prices across India, passing the buck to Finance Minister Nirmala Sitharaman to find a solution. He also justified that the hike in government spending was another reason why the taxes were being collected.

Explaining the reason for fuel price rise, he said, "There are two main reasons behind fuel price rise. The international market has reduced fuel production & manufacturing countries are producing less fuel to gain more profit. We have continuously been urging the OPEC & OPEC plus countries that it should not happen. Another reason is COVID."

He added, "For developmental work, Centre & state govts collect tax. Spending on development work will generate more jobs. Govt has increased its investment & 34% more capital spending will be done in this budget: Union Petroleum Minister. State govts will also increase spending. This is why we need this tax but there is also the need for balance. I believe Finance Minister can find a way."

Dharmendra Pradhan claims COVID & Intl markets behind fuel price hike: 'FM can find a way'

On Saturday, Nirmala Sitharaman opined that fuel prices' rise is not completely in the Centre's hands and it needs to be discussed with the states. The Minister said that the production forecast by OPEC countries is also likely to come down, raising more concerns on the rise in fuel prices. "Government is not in control of the price of oil, it has been technically freed. Oil companies import, refine and sell crude oil," she added. PM Modi has justified the fuel price hike saying that the middle-class would not have been burdened if the previous governments had focussed energy import dependence of the country.

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Petrol prices rise

With the unabated rise in petrol prices, Congress-ruled states like Chhatisgarh, Rajasthan and several other states like Madhya Pradesh, Assam, Kerala have witnessed strikes and protests regarding the fuel price rise. Congress has demanded a nationwide slash in Central excise duty over fuel. Centre has told Parliament that the government is not considering a reduction in excise duty to cool rates from their record highs.  Central and state taxes make up for over 61 per cent of the retail selling price of petrol and about 56 per cent of diesel. 

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