Cab Fare Hike: Govt Allows Double Base Fare

New Delhi, Jul 2 (PTI) The road transport ministry has allowed cab aggregators to charge up to two times the base fare during peak hours, as against 1.5 times earlier, while for non-peak hours the fare has to be a minimum of 50 per cent of the base fare.

The Ministry of Road Transport and Highways in its 'Motor Vehicles Aggregator Guidelines 2025' said "the aggregator shall be permitted to charge a minimum of 50 per cent lower than the base fare and a maximum dynamic pricing of two times the base fare specified under sub-clause (17.1)."

Moreover, the base fare chargeable shall be for a minimum of three kilometers to compensate for "dead mileage" -- including the distance travelled without a passenger and the distance travelled and fuel utilized for picking up the passenger(s).

As per the guidelines, the fare notified by the state government for the respective category or class of motor vehicles, shall be the base fare chargeable to passengers availing services from the aggregator.

States have been advised to adopt the revised guidelines within three months.


In case of cancellations, a penalty of 10 per cent of the fare not exceeding Rs 100, shall be imposed on the driver, if the cancellation is made without a reason identified as valid by the aggregator.

A similar penalty will be imposed on the passenger when such cancellation is made without a valid reason.

The guidelines said the Central government shall develop and designate a portal to enable for single-window clearance of application for licence as aggregator. "The licence fee payable by the aggregator shall be Rs 5 lakhs and the licence shall be valid for a period of five years from the date of its issue," it said.

Aggregators have been mandated to ensure that drivers have health and term insurance of at least Rs 5 lakh and Rs 10 lakh respectively.

The guidelines also specified that a Grievance Officer shall be appointed by the aggregator.

"An aggregator shall not onboard vehicles which have been registered for more than a period of eight years from the date of initial registration of the vehicle and shall ensure that all vehicles onboarded by it should not have exceeded eight years since the date of initial registration of the vehicle," as per the guidelines.