The city"s cab fares are set to go up by about Rs 2 per km as the private cab companies have already managed to convince the transport department to permit them to increase the fares.
“The department has tentatively agreed to increase fares by Rs 2 per km, though some companies like Meru had asked that the fares be increased by Rs.5, taking the price per km from Rs.15 to Rs.20. But that was declined as it would burden commuters. We are segregating hike in fares into different categories," a senior official in the transport department told a newspaper.
The current fare of Rs 15 will go up to Rs 17 for cabs equipped with air conditioner (AC), hatch box and GPS system while cabs with an AC but no hatchbox or GPS system would be rising their fares from Rs 8 to Rs 9 per kilometre.
The fares for cabs with no AC and no hatchbox is set to go up by Rs 1, that is from Rs 7 to Rs 8 per kilometre.
The demand for hike in cab fares was prompted by the recent surge in fuel prices. With the government rising fuel prices in Jun 2010, petrol got costlier by Rs 4 per litre while price of diesel went up by Rs 2.25 per litre.