The bad news is taxi rides will cost more from July 1. The good news is the calculation is getting simpler.

The minimum fare will go up to Rs 22 for the first two kilometres from the existing Rs 20. Every successive kilometre will cost Rs 2.20 paise more than the current rate.

The revision has made calculation of fares much simpler. You will have to pay twice the meter reading plus Rs 2. For example, if the meter reads Rs 25, you have to pay Rs (25x2+2) = Rs 52. The fare at the existing rates would have been Rs 47.

The hike follows the increase in fuel prices earlier this month. Taxi fares were last increased on October 3, 2005.

The Bengal Taxi Association, Calcutta Taxi Association, Calcutta Metropolitan Taxi Association and the West Bengal Taxi Drivers’ Welfare Association on Monday called off their indefinite strike from Wednesday after their leaders met transport minister Subhas Chakraborty at Writers’ Buildings on Monday afternoon.

“We are very happy. All our demands have been met. The hike will enable us to cover the loss of Rs 125 per day that each taxi has to incur since fuel prices went up,” said the president of the Bengal Taxi Association, Bimal Guha.

The taxi unions had asked for Rs 24 for the initial couple of kilometres and Rs 2.20 for every successive kilometre.

“Even we knew that what we had asked for was not going to be granted by the government. The hike is just enough,” said the Calcutta Taxi Association president, Tarak Barik.

“The strike call was a farce. The hike is too steep. It should have been Rs 21 for the first two kilometres and Rs 1.90 for every successive kilometre. The hike will bring down the number of passengers,” Trinamul leader and the president of the Progressive Taxi Men’s Association, Madan Mitra.

The hike will be effected after a nod by the Left Front, which is “a mere formality”, said a senior transport department official.