After four months of record-high gasoline prices, Dubai recently declared a boost in taxi fees, with the increase ascribed to a 12 fils per kilometer increase. Gasoline costs in the United Arab Emirates have been on the rise since February. The price of Special 95, for example, has jumped 51 fils from January's cost of Dh2.71 a liter to the current price of Dh3.22 per liter.
Fuel Price Surge Leads to Taxi Fare Increase
Dubai has recently announced an increase in taxi fares, with a rise of 12 fils per kilometer, following a consistent surge in petrol prices over the past four months. This upward trend in petrol prices within the UAE began in February of the current year. For instance, the cost of Special 95, which was Dh2.71 per liter in January, has now escalated to Dh3.22 per liter, marking a significant increase of 51 fils since the beginning of the year.
Rising Petrol Prices
As stated on the Dubai Taxi Company PJSC (DTC) website, the per-kilometer charge for taxi services in Dubai has now been adjusted to Dh2.09, up by 12 fils from the previous rate of Dh1.97 per kilometer. Consequently, passengers traveling, for instance, from Al Barsha to Dubai World Trade Centre face an additional cost of approximately Dh3 for a 25-kilometer journey.
It's worth noting that the fare hike solely affects the fuel usage component of the fare per kilometer. The flag-down rate, which denotes the initial charge incurred at the beginning of a taxi journey, remains unchanged. Similarly, the fares for other public transportation modes in Dubai, such as the Metro, Tram, and public buses, remain unaffected by this adjustment.
The last notable increase in taxi fares occurred in July 2022, also in response to rising fuel prices. During that period, global oil prices had surpassed $100 a barrel, leading to a fare hike of 20 fils from Dh1.99 to Dh2.19 per kilometer.
The Roads and Transport Authority (RTA) has clarified that changes in taxi fares are dynamic, driven by fluctuations in local fuel prices and calculated based on fuel usage per kilometer. This dynamic pricing mechanism was previously evident in January 2023, when taxi fares in Dubai experienced a reduction of 22 fils per kilometer, dropping from Dh2.19 to Dh1.97.
While Sharjah has not implemented a taxi fare increase, certain intercity routes between Dubai and Sharjah have experienced fare adjustments due to recent oil price hikes. Additionally, bus fares in Sharjah have increased by up to Dh3 on certain routes since March 1st, reflecting the broader impact of rising fuel costs on transportation services across the region.
