Gujarat taxi operators increase fares by ₹2-3 per km amid fuel price hike

Rising fuel prices have begun impacting Gujarat’s taxi sector, with several small taxi operators increasing fares by ₹2 to ₹3 per kilometre amid mounting operational costs and slowing business.

Taxi operators said increasing diesel and CNG prices had severely affected the sector, which was already witnessing a sharp decline in passenger demand.

A taxi operator in Rajkot claimed the industry was facing one of its worst slowdowns in more than two decades.

“This is the first time in the last 23 years that we have witnessed such a slowdown in the taxi business. On top of that, rising diesel and CNG prices have broken the backbone of our business,” the operator said.

Despite increasing costs, several larger operators are still hesitant to revise fares immediately, fearing they may lose customers due to competition from state transport buses and other travel options.

Operators, however, indicated that further fare hikes may become unavoidable if fuel prices continue to rise.

According to taxi associations, some operators serving routes between Rajkot and Ahmedabad have already revised fares, while others are waiting to assess future fuel price trends before taking a decision.

Auto-rickshaw operators have also warned of possible fare revisions.

Officials associated with rickshaw unions said there are nearly 42,000 auto-rickshaws operating in Rajkot and that continued increases in CNG prices could force drivers to raise fares.

Sources said app-based cab services and private transport operators in urban centres were also considering fare hikes from next month.

Taxi operators cited higher toll charges, increased vehicle maintenance expenses and rising food costs for drivers as additional reasons behind the price revisions.

According to operators, maintenance expenses such as oil changes for vehicles have risen from around ₹1,700 earlier to nearly ₹1,900 currently.

Some toll plazas have also reportedly increased charges by ₹5 to ₹10.

Operators said the slowdown in the sector has also reversed the earlier shortage of drivers.

“Earlier it was difficult to find drivers, but now many drivers who have lost work are approaching operators looking for jobs,” a taxi operator said.

Revised taxi rates in some categories include an increase in Vista car fares from ₹18 to ₹20 per kilometre, Dzire fares from ₹11 to ₹13 per kilometre and Ertiga fares from ₹12 to ₹14 per kilometre.

Fares for Tempo Traveller minibuses have reportedly been increased from ₹35 to ₹38 per kilometre.