Dubai residents will notice a slight bump in taxi fares as petrol prices continue to climb. The Dubai Taxi Company PJSC (DTC) has upped the rate by 12 fils per kilometre, marking the first significant increase since July 2022. Let’s break down what this means and why it’s happening.
Why the Increase?
Since February this year, petrol prices in the UAE have been steadily rising. For example, the cost of Special 95 has jumped from Dh2.71 per litre in January to Dh3.22 per litre currently. That’s an increase of 51 fils since the beginning of the year.
What’s Changed?
The revised taxi fare now sits at Dh2.09 per kilometre, up from Dh1.97 previously. So, for a 25-kilometre journey from Al Barsha to Dubai World Trade Centre, passengers will have to shell out around Dh3 more than before.
Not Everything is Going Up
While the fare per kilometre has increased, the initial flag-down rate remains the same. Also, fares for other modes of transport like the Metro and public buses remain unaffected.
The Reason Behind It
The Roads and Transport Authority (RTA) explains that the change in taxi fares is tied to the fluctuating fuel prices in the local market. This ‘dynamic pricing’ ensures that taxi fares accurately reflect changes in fuel costs, keeping things fair for both passengers and drivers.
Taxi fares: Compared to Last Time
The last time taxi fares saw a significant increase was back in July 2022, when global oil prices were above $100 a barrel. At that time, fares rose by 20 fils per kilometre, from Dh1.99 to Dh2.19 per kilometre.
What’s Happening Now?
Currently, global oil prices range between $83 and $87 per barrel, up by an average of $4.53 compared to March prices.
Changes in Neighboring Emirates
While Dubai has seen a fare increase, other emirates have experienced different adjustments. For instance, the Ajman Transport Authority implemented a 4-fil increase in taxi fares in March, bringing the rate to Dh1.83 per kilometre. However, there haven’t been any fare increases in Sharjah, though recent oil price hikes have affected some routes between Dubai and Sharjah, as well as intercity prices.
The increase in taxi fares reflects the dynamic nature of transportation pricing, closely linked to global market trends. As petrol prices fluctuate, authorities remain committed to ensuring fair and transparent pricing structures that benefit everyone involved.
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