In 2003 the minimum fare of auto was eight rupees. Today it is 15. In the last 9 years, fare has just about doubled. Now think about your salary in 2003? If you did not start working, what was your salary in 2005 or 2007? And what is it now? I have done a small dip-stick. My findings suggest that people are earning anywhere between six to eight times in 2012 as opposed to what they were earning in 2003. Our earnings have grown 20-25% on an average every year. So why should that of auto wallas be 7%?
BEST bus fares have continuously gone up over the years. A four km bus ride costs 12 rupees today. Until the fares had risen recently, it was cheaper for three people to travel in auto as opposed to in a bus. Intuitively that does not make sense. Even now, a four km auto ride costs 43 rupees while that of a bus will costs 36. The 20% incremental is great to get a reserved seat and a quicker ride I guess.
The next argument is very basic and comes from the first chapter of any economics book – law of demand-supply. Over the years, owing to increasing incomes, many people are able to afford an auto. As a result there are long queues (if there are one) and lot of people are soliciting auto wallas. Since there are limits to auto licences (thankfully), there is a huge demand for autos and limited supply. The gap has widened over the years. Laws of demand supply suggest that prices shall rise if demand is not met with enough supply. So why the surprise? Do we not pay high fares for air tickets when demand exceeds supply? Do we not do the same for vegetables?
The last argument is most compelling to my mind. I asked friends in other cities about auto fares. Here is a quick average of ten cities for one and four km rides. First of all, in most cities autos do not run on meters, so these are guestimates. An average cost of a one km ride can range between 15-20 rupees. A four km ride can cost 40-50 rupees. Cities are Delhi, Jaipur, Bangalore, Cuttack, Chennai, Ranchi, Ahmedabad, Surat, Coimbatore and Kochi. These fares are in line with the current auto fares while all of these cities have lower cost of living as opposed to Mumbai. The only saving grace is that in many cities, share rides are common. Not in Mumbai. But that is a fallacy of the administration, not auto wallas.
Who likes to pay more? I don’t. But when put contextually, it is the need of the hour. They fudge the meters, refuse rides, misbehave... but that is common for all cities. I personally am in favour of the rise and would rather endorse a 10% increase every year on just two conditions. Fair meters and no refusals just as it was few years ago.
What about you?
