Thursday 31 March 2022
The Committee for the Environment & Infrastructure is proposing a further increase in the maximum taxi fare in recognition of the significant recent rise in fuel costs. The Committee is proposing a 5.35% increase.
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 has met recently with members of the Committee for the Environment & 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 is proposing to further increase the maximum tariff now. 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.
Islanders can submit their comments on the proposed increase. They must send in their submissions by Thursday 14 April 2022 and they can do so by emailing passengertransport@gov.gg or they can write to: The Director of Traffic and Highway Services, Bulwer Avenue Office, Bulwer Avenue, St Sampson's, GY2 4LR.
