Fuel price hike prompts app cab operators to seek fare regulation in Bengal

The Online Cab Operators Guild in West Bengal has urged the state transport department to introduce a regulated fare structure due to rising fuel prices and alleged exploitative surge pricing.

App-based cab operators' association in West Bengal on Tuesday urged the state transport department to introduce a regulated fare structure, citing rising fuel prices and alleged exploitative surge pricing by aggregators.

In a letter submitted to the principal secretary of the transport department, the Online Cab Operators Guild sought ''urgent regulation and restructuring'' of app-based taxi fares in the state.

Guild secretary Indranil Banerjee said the continuous increase in petrol, diesel and CNG prices has sharply raised operational costs for commercial vehicles, putting financial pressure on drivers attached to online taxi service platforms.

Fuel prices were revised twice within a week.

''The operational costs for commercial vehicles have risen exponentially, placing an immense burden on cab drivers who struggle to maintain a basic livelihood,'' the association said in the letter.

The organisation of app-based cab operators alleged that passengers are often charged exorbitant fares during peak hours, bad weather and high-demand periods through surge pricing, while drivers continue to receive ''disproportionately low payouts''.

According to the guild, app-based aggregators sometimes charge commuters ''two to three times the base fare'' during surge periods.

The organisation proposed several regulatory measures, including linking base fares dynamically to fuel prices, imposing a statutory ceiling on surge pricing, and fixing minimum and maximum per-kilometre rates for different vehicle categories such as hatchbacks, sedans and SUVs.

It also sought an audit mechanism to ensure a fair share of total fares reaches drivers.

''A well-regulated app cab ecosystem will ensure a predictable, fair pricing model for daily commuters while providing a dignified and economically viable livelihood for thousands of drivers in our state,'' the letter said.

The guild expressed willingness to participate in consultations with the transport department on the issue.

Petrol and diesel prices were raised by about 90 paise per litre on Tuesday - the second increase in less than a week - as state-run fuel retailers moved to narrow mounting losses triggered by a sharp surge in global crude oil prices following the Iran conflict.

The latest increase follows a Rs 3-per-litre hike on Friday - the first fuel price revision in more than four years.