In response to the vehicle unions' demand for a raise, the Gujarat government authorised a Rs 2 increase in auto-rickshaw prices on Wednesday.

After meeting with leaders of various auto-rickshaw unions, state Transport Minister Purnesh Modi declared that the minimum charge has been raised to Rs 20 from Rs 18, and the running fare for each successive km has been raised to Rs 15 from Rs 13.

"We agreed on a hike of only Rs 2 to raise the fee to Rs 20 from Rs 18 at the moment, despite the unions' demands for a hike of Rs 30. Similarly, we have approved a Rs 2 increase in the per-kilometer running charge. The revised tariffs will take effect on June 10th," Modi said in Gandhinagar to reporters.

The unions have also agreed to the revised fares and have signed the agreement. The new fares will be in effect until March 31, 2023, and the unions have agreed not to seek any more increases or organise any protests before then, he said. "We have reached an amamicableiable agreement on the matter of fare hikes." Auto-rickshaw drivers will earn almost Rs 100 extra per day on account of the higher tariffs. We made the choice in light of the current situation," the minister said.

Following the recent increase in the CNG prices, which is now over Rs 80 per kilogramme in Gujarat, the auto unions have been demanding a big increase in car rates.

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