Cab fares likely to go up soon

Cab fares likely to go up soon

Cab fares are likely to go up soon as the government is in the final stages of notifying the regional transport authority's report which has, for the first time, recommended minimum fares, along with maximum fares.

Transport minister H M Revanna told DH on Thursday that he will clear the file on fare structure within the next few days.

"I had sought some changes in the report sent by the transport commissioner. Now, we are in the final stages of discussion before clearing it," he said.

While drivers attached to Ola and Uber protested against falling earnings, those running conventional taxis alleged unfair competition by app-based cabs and urged officials to fix minimum fare.

The department had fixed Rs 19.50 per kilometre for sedans and Rs 14.50/km for hatchbacks in 2013 as maximum fare.

If all goes well, the department may finally succeed in revising the maximum fare and fix minimum fare for cabs in the third attempt. Two such attempts over the last eight months have been stonewalled.

Sources said the third report on fare structure was prepared by a two-member team led by Joint Commissioner for Transport J Gnanendra after two months of study. The team held meetings with all the parties concerned before submitting the report.

The department had classified the cars into five categories (A to E) based on the car's value and input costs.

Before the revision, hatchbacks were divided into A (above Rs 4 lakh) and B (above Rs 5 lakh) category with the minimum fares proposed at Rs 12/km and Rs 36/km, respectively with a common maximum fare of Rs 36.

Fares for sedans, under category C and D, will have minimum fares above Rs 15 per km with the maximum fare at Rs 45/km. The E category had luxury cars priced above Rs 30 lakh with minimum fares set at Rs 30.

"Considering that the sudden upward revision will hit public hard, the minister had specifically told officials to reduce the fares. The final will be cleared in a final meeting which is supposed to be held within the next two days," the source said.

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