Cab and Taxi Price Hike in Bengaluru: Commuters to Pay More Per KM

In response to the rising costs of steel and automobiles, car manufacturers have increased vehicle prices, while the central government has raised toll rates. Additionally, the Karnataka state government has implemented a higher sales tax on diesel. As a result, the burden has now fallen on the tour and travel industry, leading to an increase in cab fares by ₹2 to ₹5 per kilometer starting today.

April Brings a Wave of Price Hikes

The year 2025 has been marked by continuous price hikes, particularly in the transportation sector. The month of April has seen a surge in costs, including increased tolls, vehicle price hikes by manufacturers, and a rise in diesel taxes.

In response, the Tours and Travels Association and the Cab Owners and Drivers Association have decided to raise fares, stating that without this adjustment, it would be difficult to sustain their businesses.

Why Are Cab Rates Increasing?

Several factors have contributed to the increase in cab and travel fares:

• The central government has increased toll rates by 5%.
• Automobile manufacturers have raised prices by 3% to 4% per vehicle.
• The state government has imposed a 5% lifetime tax and an additional 1% cess on yellow board vehicles priced under ₹10 lakh.
• Due to these changes, the cost of purchasing vehicles has risen significantly:
• A ₹10 lakh car now incurs an additional cost of ₹30,000 to ₹40,000.
• A ₹20 lakh car has become ₹60,000 to ₹80,000 more expensive.
• A yellow board vehicle worth ₹10 lakh now requires an additional ₹50,000 to ₹60,000 in lifetime tax payments.

Impact on Commuters

With cab fares increasing, daily commuters are feeling the financial strain. Dhanush, a Bengaluru resident, shared his concerns, stating, "With prices rising everywhere, the increased cab fares will only add to the burden of common people. It would be helpful if the government took steps to reduce diesel prices."

As fuel prices continue to impact various sectors, the question remains: What's next in the wave of price hikes?