NEW DELHI: App-based operators such as Ola and Uber may soon be forced to keep taxi fares within a certain range in Delhi, as the city’s Arvind Kejriwal government is working on a policy that seeks to put upper and lower caps to the prices they can charge.The government wants to stop them from resorting to surge pricing — the dynamic pricing model under which fares rise when demand increases — to protect the commuter, while at the same time preventing the app-based companies from undercutting fares and hurting other taxi operators, Delhi government officials said.“The central government has told all states to prepare a policy. Two states have already made it. We are also making it,” a senior official told ET. “To ensure better service for citizens, the minimum and the maximum will be etched out.Rest, it is the operator’s decision.” The aim is to make the fares more predictable, the official said. “If you take a cab, the operator will tell you it is Rs 12 per kilometre.If the maximum price is Rs 15, then you (operator) can’t take more than that. But you can’t also run at Rs 4 when your expenditure is Rs 5,” he explained.The AAP government and the app-based taxis have been at odds for some time now. The government wants to regulate them as transport operators, but Ola and Uber say they just provide technology for taxi drivers and commuters to connect and aren’t transport companies.Other taxi operators say the app companies are detrimental to them as they, backed by heavy foreign funding, undercut prices to entice riders and give unrealistic incentives to drivers.On Sunday, Kejriwal said his government would act against Ola and Uber, a statement that helped avert an auto rickshaw and taxi strike called against the app-based companies even as the second round of oddeven vehicle rationing is on. On Wednesday, the CM called surge pricing “daylight robbery” and said “no responsible government can allow that”.Following the government threat, and with many commuters complaining about the practice, Uber and Ola this week suspended surge pricing in Delhi.But sources at the companies said they haven’t yet received any notice from the Delhi government to stop it and acted based on tweets from the chief minister and media interviews of the transport minister. They are alarmed about vehicles being impounded without any official notice to the effect, the sources said.In a statement on Wednesday, Ola said: “We extend complete support to the odd-even initiative by the government and have revoked peak pricing completely in this period.” According to sources, Uber sought audience from the government, but has so far failed to meet any minister.Over the next fortnight or a month, the Delhi government plans to meet all stakeholders to shape the policy, the government official said. “Work on the policy has started only lately, so it may take another 15 days or even perhaps a month to finalise details. Our duty is to give a neutral policy which ensures that businessmen enjoy doing business and commuters have a good time riding cabs.”The government isn’t against market forces, he said. “Let there be an open competition in the market and people will use whoever gives the best price and service. Surge pricing will not be allowed, but we won’t stick you to a fixed tariff, say only Rs 6 (per km),” he said. “You will have scope (to change prices). But it won’t be a situation where you say you will charge Rs 6 but are charging Rs 15.”In a tweet on Wednesday, Kejriwal termed as blackmailing the operators’ statement that cabs weren’t available because of huge demand during oddeven.“Some taxis saying they will not provide cab if they are allow to loot. This is open blackmailing and government will not let that happen,” he said.(Shelley Singh contributed to this report)