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Govt hikes CNG autorickshaw, taxi fares PDF Print E-mail
Sunday, 27 April 2008

Staff Correspondent

The government announced raised fares Saturday for CNG-run auto-rickshaws to Tk 6 a kilometre, non-AC taxicabs to Tk 8 and AC taxicabs to Tk 10, a government official said.

"The fares will be effective from today (Saturday)," additional secretary of the communications ministry ATK Ismail told bdnews24.com after a meeting at the communications ministry.

The minimum fare for autorickshaws will start at Tk 18, non-AC taxicabs at Tk 30 and AC taxicabs at Tk 40, Ismail said. He said CNG-run buses would not be allowed to hike their fares.

The decision came two days after the government doubled the price of compressed natural gas to Tk 16.75 from Tk 8.50, saying the move was meant to cut huge losses incurred by Petrobangla.

The government had initially encouraged people to convert their vehicles to the CNG system as a 'clean fuel'. The use of CNG in public and private transport became more popular in the wake of the rising prices of liquid petroleum in the international and domestic markets.

The use of CNG as motor fuel gathered steam in 2000 after the government encouraged the private sector to engage in the CNG business by installing conversion plants and refuelling stations.

Because of low prices, compared to diesel, petrol and octane, CNG became a popular fuel for motor vehicles of the middle class. CNG costs almost a quarter of the liquid petroleum price.

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