Fuel Costs Force Taxi Fare Rises

Tough economic conditions are undoubtedly affecting taxi sales income for cabbies around the UK.  And with the cost of diesel on the up too, taxi drivers are being hit hard.

Faced with these difficult circumstances, taxi operators’ opinions are split as to whether the right response is to increase fares, to create better margins or to freeze fares, to attract more trade.

In Hertfordshire, St Albans and Harpenden cabs have seen a ten percent rise in taxi fares, the first increase in the area in three years.

Chairman of the local licensing committee, Cllr Chris White, stated: “The committee is normally reluctant to make increases and only does so in exceptional circumstances. There’s not been an increase in the fares since 2007.

“The committee had a very good look at what is happening in neighbouring areas before we came to our decision and we’re confident that with it we’re protecting the ability of the taxi trade to provide a service.”

North Lincolnshire Council has also agreed to a fare increase of around five percent, following calls from local taxi drivers and operators.

North Lincolnshire Taxi and Private Hire Association chair, Devlyn Pugh, commented: “The cab trade needs this increase. Everyone is well aware of fuel prices and the VAT increase and it’s affecting us as a trade. The proposed increase is quite small, but it’s just to allow for the VAT and fuel.

“It can be a daily struggle for taxi drivers. To continue to provide the service we do, we need this increase.”

In Aberdeen, taxi operators are hoping for an increase in fares later in the year. The city’s cabbies last year requested that a proposed increase be delayed until at least June 2011.