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What's your take on auto fair in Chennai.
Today I learned the government guidelines for auto fair is Rs. 12 per KM over the base fair of Rs. 25 for the first 1.8 KMs. Which means if I have to travel 3 KMs, then I will be paying around Rs. 50. Rs. 50 for 3 KMs may not sound much but let's look at this, Bajaj company claims their auto milage is 40 KM per litre. Let us assume the actual milage is 20 KM per litre. Let us calculate the operational cost. Average cost per litre petrol - Rs. 103 Average milage of Auto - 20 KMPL Petrol cost per litre - Rs. 5.15 Other Wear and Tear per KM - Rs. 2.50 (assumption) RTO and other mandatory expenses per KM - Rs. 1 (assumption) Total expense per KM - Rs. 8.65 Govt. guidelines cost per KM - Rs. 12 Margin - Rs. 3.35 I have made some assumption here, what is your take on these assumptions, is this margin enough to survive in a city like Chennai. If I am wrong in any of my assumptions and calculations, pls correct me.1
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