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Taxi fare increases approved in recognition of significant rise in fuel costs

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Tuesday 26 April 2022

The Committee for the Environment & Infrastructure has approved an interim 5.35% increase in maximum taxi fares in recognition of the significant recent rise in fuel costs. Fare changes will come into play from Wednesday 27 April 2022.

The maximum fare was increased by 3.34% at the beginning of this year (to cover the preceding two-year period) and another increase was not due to be considered until the end of 2022. However, the Taxi Federation met recently with members of the Committee for theEnvironment & Infrastructure and the Policy & Resources Committee to say it was struggling to cope with very significant increases in fuel costs. Following two very challenging years because of the COVID pandemic, taxi operators are now being especially impacted by fuel costs but unlike many other sectors, regulations mean they are not able to freely adjust their prices to reflect changes to their running costs. The January increase in the maximum fare (based, in part, on Q2, 2021 motoring costs) does not reflect how much fuel costs rose in the past 9 months, where the cost of diesel fuel has gone up by 23%. It is to reflect this extraordinary rise that the Committee proposed, and has now approved following consultation, a further increase to the maximum tariff. Taxi fare increases are calculated using the established 'Halcrow Formula', and that same formula has been used to determine the level of this interim increase of 5.35%

This increase is a standalone measure and separate to the review of the taxi industry which is currently underway and looking at various aspects of how operators are licenced. The Committee will consider those findings when the review has finished to determine what other, longer-term changes should be taken forward.

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