You are talking from a passenger point of view. If you are in the railways and are tasked to resurrect the railways financially you may think and speak differently. The auto guy too is there at an odd time. He too deserves something extra. Obviously rs 1000 is not reasonable and him quoting that fare may be without any rationale but more importantly we don't expect the autowala to show some sympathy. Here though, the railways have rules in place. Teh rates just doesn't jump to rs 1000. From 600 to 700 to 800 etc and then 1000. In simple terms railways are making profits by offering a service something which any commercial organisation always does( monopoly or otherwise) something which they haven't done all these years due to politics and wrong policies.
Taking...
more... your auto example forward- Just imagine there were 3 autowalas. Assume One autowala there was willing to ferry you home at rs 200 which is the normal fare. But 6 passengers got out of the station and 3 run and take that auto and pay the normal fare and go home. The other 3 missed the chance for whatever genuine reason they have( heavy luggage, old parents etc) and so have to depend on whatever is available. But this is not what it happened for you, you had only 2 autos and had no choice. But in railways, they have one or two normal trains running with normal fares. You missed getting a ticket there and now pay a higher price to travel on the alternate option that railways have made available to you. Since no one feels travel is as much a bare necessity as say roti kapda or employment the govt too doesn't interfere much.