LPG Price Hikes Raise Concerns for Ride-Hailing Drivers, Prompting Fears of Supply Disruption and Income Loss

Fuel Price Hikes and Supply Disruptions Hit Ride-Hailing Drivers

Key Figures:

• LPG price hike from Rs 59 to Rs 89 in Bengaluru between February 28 and March 10
• CNG price increase from Rs 59.84 to Rs 64.74 per liter in government bunks
• Number of CNG vehicles in Bengaluru: 1.8 lakh, including 40,000 cabs and 90,000 auto-rickshaws

Market Impact:

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Fuel prices have begun rising in India due to the escalating Israel-Iran conflict, which has disrupted energy supplies worldwide. LPG prices have surged sharply in recent days, with auto LPG prices increasing from Rs 59 on February 28 to Rs 89 on March 10. Industry representatives say the fuel price hike has already started becoming visible at retail outlets.

Industry Response:

The Auto Rickshaw Drivers' Union (ARDU) is monitoring the situation closely and has not written to the government yet. However, the union is planning to meet today to assess the situation and speak to the ministry if required. The Ola Uber Drivers' and Owners' Association has expressed concerns about the situation, stating that drivers are facing a double whammy with high CNG and auto gas prices.

Supply Chain Disruptions:

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Industry sources say supply issues are already being felt in some cities, with auto LPG filling stations in Chennai and Bengaluru running dry. Some gas pump stations are shutting down due to inadequate supply, and prices are going up. However, a senior GAIL Gas official has stated that there is no immediate shortage of CNG or PNG for households.

Broader Impact:

The Telangana Gig and Platform Workers' Union (TGPWU) and the Indian Federation of App-Based Transport Workers (IFAT) have warned that fuel supply disruptions could affect gig workers across sectors. Thousands of drivers operating LPG and CNG vehicles on ride-hailing platforms depend on uninterrupted access to affordable fuel to sustain their daily livelihood. Any disruption could lead to long queues at fuel stations and fewer trips for drivers.