Rising fuel prices have started affecting Gujarat’s taxi industry, with several small taxi operators increasing fares by ₹2 to ₹3 per kilometre due to higher operating costs and slowing business.
Taxi operators said the continuous rise in diesel and CNG prices has put additional pressure on the sector, which is already facing a decline in passenger demand.
A taxi operator in Rajkot said the industry is going through one of its worst slowdowns in over two decades.
“This is the first time in the last 23 years that we have seen such a slowdown in the taxi business. Rising diesel and CNG prices have badly affected our livelihood,” the operator said.
Despite rising expenses, many large operators are still avoiding immediate fare hikes as they fear losing passengers to state transport buses and other travel options.
However, operators warned that further fare increases may become unavoidable if fuel prices continue to rise.
According to taxi associations, some operators on the Rajkot-Ahmedabad route have already revised fares, while others are waiting to see how fuel prices change in the coming days before taking a decision.
Auto-rickshaw operators have also hinted at possible fare hikes. Rickshaw union officials said around 42,000 auto-rickshaws operate in Rajkot, and further increases in CNG prices could force drivers to raise fares.
Sources said app-based cab services and private transport operators in urban areas are also considering fare hikes from next month.
Taxi operators cited higher toll charges, increased vehicle maintenance costs and rising food expenses for drivers as major reasons behind the revised fares.
According to operators, vehicle maintenance expenses such as oil changes have increased from around ₹1,700 earlier to nearly ₹1,900 now. Some toll plazas have also reportedly raised charges by ₹5 to ₹10.
Operators added that the slowdown in business has also ended the earlier shortage of drivers.
“Earlier, it was difficult to find drivers, but now many drivers who have lost work are approaching operators for jobs,” a taxi operator said.
Revised fares in some categories include Vista car rates increasing 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 gone up from ₹35 to ₹38 per kilometre.