UAE taxi firms undecided on hike, but rise is inevitable say cabbies

DUBAI, ABU DHABI // The cost of using a taxi will inevitably rise within the next few weeks.

Although taxi companies say they have yet to decide on any fare increase, drivers are predicting that while customers will pay more they will earn less.

In Dubai, taxi drivers said they were concerned what affect the rise will have on businesses.

The rise is estimated to cost each petrol-run cab about Dh41 a day, or about Dh1,200 a month.

Sonal Ahuja, regional director of PTV Group, which provides software and consultancy services for traffic and transport planning, said that the rise in fuel prices was likely to reduce drivers’ earnings by 10 to 15 per cent.

“A 23.6 per cent increase is substantial, and fares are likely to increase. That’s a sad situation for those who are dependent on them,” said Ms Ahuja.

Aijaz, a driver from Bangladesh, said: “I don’t think prices will increase immediately, it will take a week or two for bosses to decide.”

The Centre for Regulation of Transport by Hire Cars, or TransAD, recently formed a committee to review the impact of the new fuel price on taxi operations on a monthly basis as well as the general trend of fuel costs before deciding on an increase.

TransAD’s general manager, Mohammed Al Qamzi, said: “We have yet to decide on anything.”

Some drivers, however, expected customers to quickly become accustomed. “The last time there was an increase in fares some customers reduced their journeys, but that did not last long,” said Faisal, an Indian driver. “People will be upset for some time but then they will need to take a taxi.”

Arabia Taxi, one of six franchises in the capital, plans to convert most of its cabs to run on compressed natural gas (CNG) in response to the rise. Of its 1,245 silver taxis, 330 run on CNG.

“Our 888 Mercedes Vito Compact vans run on green diesel. So far 60 per cent are now out on the road. We plan to roll out the remaining in the coming months,” said Meeran Raja Ibrahim, general manager. “We have not made any decision and are not focusing on whether or not to increase fares. We had a meeting with TransAD yesterday and they said they will look into the fuel increase per month. ”

The ride-sharing service Uber said its fares adhere to a pricing framework set by the authorities. “If their fares change based on the fuel increase, Uber fares will as well to reflect the regulations,” said spokeswoman Shaden Abdellatif.

The increase might also hit parents in the pocket. M L Augustine, managing director of School Transport Services, Dubai’s largest school bus operator with 1,500 buses, said: “We have both diesel and petrol buses so any benefit or not has to be worked out, that will take time.”

The RTA was unavailable to comment.

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■ Other GCC countries may follow UAE lead

■ UAE petrol price rise 'could have been worse'

■ Minister of Energy says new petrol prices are still relatively low

■ UAE fuel prices for August announced

■ UAE residents may have to consider options as petrol prices change

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