• Source:JND

Bengaluru News: Commuters in Bengaluru may soon face higher auto-rickshaw fares as drivers' unions are raising their voices for a hike in fares to keep up with inflation. The Regional Transport Authority (RTA) has scheduled a meeting with auto unions on December 23 to discuss a potential fare revision. 

The proposed changes include raising the minimum fare from Rs 30 to Rs 40 for the first two kilometres and increasing the fare for subsequent kilometres from Rs 15 to Rs 20. The unions have highlighted that the last fare adjustment was made in December 2021.

"The prices of new auto rickshaws have skyrocketed in Bengaluru. The fares for the auto rickshaw have been revised only twice (2013 and 2021) in the past decade, failing to keep pace with inflation," D Rudramurthy, general secretary of Auto Rickshaw Drivers' Union (ARDU), was quoted as saying by MoneyControl.

The cost of Auto LPG in Bengaluru has now increased to Rs 61.49 per litre, further increasing the financial burden on vehicle owners. According to the MoneyControl report, some unions are urging Bengaluru to adjust its fare structure to match cities like Mangaluru, Shivamogga, and Udupi, where the minimum fare for the first two kilometres is already set at Rs 40.

Aggregator platforms such as Uber and Ola are expected to adjust their fares if there is an increase in the base rates. They currently charge a 10 per cent premium over the government’s base fare, in addition to a 5 per cent GST, as per a directive from the Karnataka High Court.

Notably, auto aggregators in Bengaluru were charging a minimum fare exceeding Rs 100 until October 2022, leading to complaints from commuters. In response, the Karnataka High Court intervened, and the state's transport department issued notices requiring auto aggregators to obtain a separate three-wheeler license to operate. 

The aggregators challenged this decision in court. Ultimately, the High Court ruled in favour of the aggregators, allowing them to continue operating but with revised fare regulations. The new fare structure capped the minimum auto fare at Rs 35, set at 10 per cent above the government’s base fare, plus 5 per cent GST.

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