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Auto Union in Mumbai Seeks Rs 2 Fare Hike, Consumer Activists Resist Move

Thampy Kurien has submitted these fare hike calculations, based on the established formula, to transport officials and is now awaiting their response.

by Roshan Karkera
Auto Union in Mumbai Seeks Rs 2 Fare Hike, Consumer Activists Resist Move

Commuters in Mumbai might have to dig deeper into their pockets as the Mumbai Rickshaw Men’s Union has requested a Rs 2 increase in the base fare for auto rickshaws operating in the city’s suburbs. The current base fare for these autorickshaws stands at Rs 23, and the union is pushing for a new rate of Rs 25.

Factors Behind the Fare Hike

Union leader Thampy Kurien has justified this fare hike, stating that it is based on the increasing consumer price index, a critical factor in determining any adjustments to auto fares, according to the government’s formula. He believes this hike is in the best interest of the four lakh auto drivers in the city. Additionally, factors such as rising capital costs of vehicles, increased maintenance and repair expenses, insurance premiums, and taxes have contributed to the hike proposal.

Awaited Response from Transport Officials

Thampy Kurien has submitted these fare hike calculations, based on the established formula, to transport officials and is now awaiting their response. As of now, no official decision has been reached on this matter, as it ultimately falls under the purview of the Mumbai Metropolitan Region Transport Authority (MMRTA).

MARTA’s Role in Fare Hike Decisions

A senior transport official clarified that the MMRTA has not yet made a decision regarding the fare hike. This authority is responsible for determining any adjustments to auto and taxi fares in the Mumbai metropolitan region. In October 2022, the MMRTA approved a fare hike of Rs 2 for autos and Rs 3 for taxis, which increased minimum fares from Rs 21 to Rs 23 for autos and from Rs 25 to Rs 28 for Kaali Peeli taxis in Mumbai.

Opposition from Consumer Activists and Commuters

While the union argues for the fare hike, consumer rights activists and commuters stand firmly against it. They emphasize that the cost of compressed natural gas (CNG), which powers these auto rickshaws, has decreased on multiple occasions throughout the year. For instance, in October, the CNG price dropped by Rs 3 per kilogram. Before that, in April, it had dipped by Rs 8/kg, and earlier in February, there was a reduction of Rs 2.5/kg.

Call for a Telescopic Fare System

In lieu of fare hikes, consumer activists propose a telescopic fare system. This suggestion draws from the government-appointed Khatua committee’s recommendations, which propose differentiated fare rates. According to this approach, the fare remains as a tariff card for the first 8 kilometers, followed by a 15% reduction in fares for distances between 8.1 km and 12 km. Beyond 12 km, there would be a 20% reduction in fares, offering more affordable options for long-distance commuters.

The debate over the fare hike in Mumbai is ongoing, with auto unions advocating for an increase while consumer activists and commuters urge for a more flexible telescopic fare system in light of fluctuating CNG costs. The decision ultimately rests with the Mumbai Metropolitan Region Transport Authority. 

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