India | Updated Sep 18, 2007 at 10:31pm IST

Auto rickshaw rates set for another hike in Mumbai

Kajal IyerKajal Iyer, CNN-IBN

Mumbai: Taking an auto to office might not be the best option for Mumbaikars anymore. Mumbai's autorickshaw owners are demanding a hike in the per kilometer rates to offset the cost of installing new electronic meters.

Says President, Mumbai Autorickshaw Union, Sharad Rao, "The rickshawwallah has a family, he has to care for his children's education, health and many more things. Prices have risen and the cost of living has gone up."

Rickshaw owners say that the current rates were fixed in 2004 and therefore need revision. But consumer activists allege that the rates were fixed as per the petrol rates then and not according to CNG prices.

Says President, Grahak Panchayat, Shirish Deshpande, "They have been using cheaper fuel and CNG also gives higher mileage, so they have been getting twin benefit."

According to activists:

  • In 2004, the petrol cost was around Rs 40 per litre
  • In the same year, the average mileage was 20 kilometers per litre
  • The rickshawwallah's cost per kilometer was Rs 2
  • However, the current rate of CNG is Rs 22 per litre
  • The CNG would give a mileage of around 40 kilometers per litre
  • So, the autowallahs are already earning a profit of Rs 1.50 per kilometer

However, rickshaw unions argue that insurance, maintenance and other costs have almost doubled.

But it's neither these numbers nor the new meters that the Mumbaikar cares about. All he cares about is his daily budget.

People say that they already spend up to Rs 40 per day on autos to commute, and if the prices go up, their budget will be adversely affected.

A final decision on the rates is expected by the end of this month. Mumbaikars are keeping their fingers crossed and just hoping for the best.

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