City residents will have to brace up for a hike in the fares of cabs. A proposal has been prepared by the UT Administration for increasing the fare by Rs 3 per kilometre.
This hike comes in the wake of the hike in the rates of diesel. The cab operators had been demanding an increase ever since diesel prices had increased.
The cab operators charge Rs 20 per kilometre at present. An official stated that the proposal has been prepared keeping in view the increase in diesel prices and the demands of the cab operators. The final nod will come from the Finance Department.
The operators, meanwhile, claim that the hike in diesel is more than the proposed hike in the fares. The fares were earlier increased in July last year.
After the hike in diesel prices this year the two cab operators had demanded that the fares need to be increased as the cost of operations had risen.
In fact Chandigarh Transport Undertaking also had prepared a proposal for increasing the fares of buses following the diesel hike. The proposal was, however, not given an approval by the Administration.