Taxi fares could rise by 9 per cent following review of operating costs
Taxi fares are likely to rise by 9 per cent this year to reflect an increase in operating costs, as recommended by the National Transport Authority (NTA).
The NTA has launched a public consultation on the proposed fare hike, which is largely based on higher labour costs and an increase in car purchase and finance costs.
Every two years, the NTA undertakes a maximum taxi fare review to assess the charges and market challenges facing the industry. Its last review, in 2022, approved an average fare increase of 12 per cent.
Night-time fares in 2022 rose by 17 per cent to incentivise drivers to operate during peak demand times. The latest report details a shift away from night-time taxi use, with the proportion of last trips taken between the hours of 8pm and 6am falling significantly.
This year’s fare review showed sustained economic growth in Ireland, which provided its own inflationary pressures. Economic challenges such as inflation, cost of living, fuel prices and energy supply were of relevance to the fare review.
Results of a household survey commissioned by the NTA suggests demand for taxis is being impacted by the cost of living in Ireland. Some 81 per cent of respondents, down from 83 per cent in 2022, said they used taxis, while 43 per cent said they were using taxis less often.
One reason given by those using taxis less is they are not socialising as frequently due to lower levels of disposable income. An increase in night-time public transport options, particularly in the Dublin area, has also had an impact.
Households reported journeys they are taking by taxi are getting shorter.
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