Once the revised tariffs come into effect on Thursday, taxi rides in Mumbai will become the most expensive among all the metros, while auto fares will be the second highest after Bangalore.
From Thursday, the minimum taxi fare will rise to Rs. 19 from Rs. 17 and the minimum auto fare from Rs. 12 to Rs. 15.
The transport department has also hiked each subsequent kilometre (km) fare - the basic fare - of taxis from Rs. 10.50 to Rs. 12.35 and for autos, from Rs. 7.12 to Rs. 9.87.
The basic fare hike determines how much more a commuter will really have to pay.
In Delhi and Kolkata, the per-km taxi fare is Rs. 11 and Rs. 10 respectively compared to Rs. 12.35 in Mumbai.
Similarly, the per-km auto fare of Rs. 9.87 in Mumbai is only lower than the per km auto fare in Bangalore (Rs. 11). In Delhi, Ahmedabad and Hyderabad, the per-km fare is Rs. 6.50, Rs 7.50 and Rs. 9 respectively.
Interestingly, Pune's per-km fare is almost the same as Mumbai's at Rs. 10. The per-km fare for cool cabs is even higher in the city at Rs. 15.42, whereas in Delhi it's Rs. 13.
Explaining why the fares in Mumbai are so high compared to other cities, a senior official from the Regional Transport Office (RTO) pointed out that Mumbai's consumer price index is 216 points, while Delhi's is only 195.
Apart from factors such as fuel cost, traffic conditions and public transport, the city's geography plays an important role in determining the fares.
"Mumbai is spread north-south so if any taxi goes to south Mumbai, there is hardly a chance to return to the suburbs until the driver gets off duty; Delhi, Hyderabad and Bangalore are geographically quite different," the official said.
In some cities such as Delhi, the minimum distance fare of taxis and autos is higher than that of Mumbai, but RTO officials said what matters most for passengers is the basic fare.
"If the minimum distance fare goes up by Re1, irrespective of the distance travelled, the final fare will go up by Rs. 1. But if the basic fare goes up by Rs. 1, for every km travelled, passengers will have to pay Rs. 1 more. A 10-km journey would mean Rs. 10 more due to the hike in the basic fare," the RTO official explained.