Taxi unions in Bengaluru demand fare revision following fuel price hike

According to the government notification issued on February 3, 2024, the base fare for a distance of up to four kilometres starts at ₹100 for vehicles valued up to ₹10 lakh, with an additional charge of ₹24 per kilometre thereafter. For vehicles priced between ₹10 lakh and ₹15 lakh, the initial four-kilometre fare is ₹115, with a subsequent per-kilometre rate of ₹28. Vehicles exceeding the ₹15-lakh mark will have a minimum fare of ₹130 for the first four kilometres, with each additional kilometre priced at ₹32.

Quick on the heels of demands from auto drivers’ unions for an increase in the minimum fare, taxi unions are also requesting a fare revision. This follows the recent decision of the government of Karnataka to increase sales tax on petrol and diesel, which has effectively made them dearer by ₹3 and ₹3.5, respectively.

The taxi unions plan to request the government to raise the standard fare by ₹1.50 per km.

“The fuel price hike has increased the burden on taxi drivers. Due to this rise, we must ask the government to increase the standard fare by ₹1.50 per km. This fuel hike will significantly impact the commercial vehicle industry,” said Nataraj Sharma, president of the Federation of Karnataka State Private Transport Association.

According to the government notification issued on February 3, 2024, the base fare for a distance of up to four kilometres starts at ₹100 for vehicles valued up to ₹10 lakh, with an additional charge of ₹24 per kilometre thereafter. For vehicles priced between ₹10 lakh and ₹15 lakh, the initial four-kilometre fare is ₹115, with a subsequent per-kilometre rate of ₹28. Vehicles exceeding the ₹15-lakh mark will have a minimum fare of ₹130 for the first four kilometres, with each additional kilometre priced at ₹32.

“Taxi drivers are struggling with low earnings while living cost and vehicle tax continue to rise. We need government support during these difficult times, especially as the cost of spare parts is also increasing. Additionally, we are facing significant challenges due to the large commissions taken by aggregators, which further cut into our earnings.” said Tanveer Pasha, president of the Ola Uber Drivers’ and Owners’ Association.

Recently, the auto drivers’ union had demanded an increase in the minimum auto fare, as it has not been raised for three years. The union cites rising fuel and spare parts prices, along with inflation, as reasons for their demand.

The Auto Rickshaw Drivers’ Union (ARDU) wrote to the Bengaluru Urban district Deputy Commissioner seeking to revise autorickshaw fares in Bengaluru in line with the Wholesale Price Index (WPI).