Auto rickshaw and taxi fares in Kerala will go up from January 1, 2027.
The decision was taken after talks between Transport Minister CP John and trade union representatives.
The government accepted the unions' demands, so the 24-hour auto and taxi strike planned for Thursday has been called off.
The unions had asked that the minimum fare of Rs 30 be raised to Rs 50.
The government has agreed in principle to a revision, but the exact new rates are not final yet.
Key points
- Auto and taxi fares in Kerala will rise from January 1, 2027.
- The 24-hour strike planned for Thursday has been called off.
- A commission will study the hike before final rates are decided.
- The government also accepted other demands from drivers.
Why were the drivers and unions demanding a change?
The last fare revision was done on April 22, 2022.
Since then, the unions say the current minimum fare of Rs 30 is no longer enough.
They asked for the minimum fare to be raised to Rs 50. That is the main gap between their demand and the current fare.
What happens next with the fare hike?
The government will set up a commission to study the proposed increase.
Its report will guide the final decision on the revised rates.
The new fares are set to come into effect from January 1.
Minister John said the government is moving ahead with steps to introduce them in 2027.
- 1Commission formedThe government will set up a commission to study the proposed fare increase.
- 2Commission reportThe commission's report will guide the final decision on the revised rates.
- 3Final rates decidedThe exact new rates are not final yet, though the government has agreed in principle to a revision.
- 4New fares beginThe new fares are set to come into effect from January 1, 2027.
Graphic: News Anek, from the facts in this report
What else did the government agree to?
Apart from the fare hike, the government accepted several other demands.
Drivers will get Employees State Insurance (ESI) benefits.
The government also agreed to regulate two-wheeler taxis that run without yellow number plates.
It will also provide restrooms for drivers at hotels and other establishments.
Explainer
What happened before
- The last auto and taxi fare revision in Kerala was done on April 22, 2022.
- Trade unions asked that the minimum fare of Rs 30 be raised to Rs 50.
- Drivers had called a 24-hour auto and taxi strike for Thursday.
Why it matters
Fares decide how much people pay for everyday rides, and they also decide how much drivers can earn.