TAXIS FARES LOOK set to increase by approximately 9% later this year after the National Transport Authority (NTA) recommended a proposed hike in fares to reflect the cost of operating a taxi.

The NTA has launched a public consultation on the proposed fare increase following its regular two-yearly review of charges in the industry.

It has recommended a maximum fare increase of 9% given the potential impact that price rises could have on consumer demand for taxis.

Its latest recommendation follows an average increase in taxi fares of 12% approved following the previous review in September 2022.

Night-time fares at the time were increased by 17% to incentivise drivers to operate during the peak demand time of the night time economy.

A portion of the increase was used to compensate taxi drivers for the requirement to provide cashless payment facilities in their vehicle.

The latest review which was carried out between November 2023 and March 2024 examined the impact of inflation, fuel prices, the general economic situation and increased public transport availability in Dublin and surrounding areas.

The NTA said it showed “sustained, steady economic growth in Ireland with resultant inflationary pressures”.

However, the NTA also observed that uncertainty was the defining feature of the economic climate faced by taxi drivers over the past decade including supply chain issues resulting from Brexit which affected the purchase of second-hand vehicles from the UK and the Covid-19 pandemic which imposed major restrictions on travel.

It pointed out that the results of a household survey commissioned by the NTA show the cost of living was affecting the demand for taxis with the number of people who said they used taxis down to 81% from 83% in a previous survey.

In addition, 43% of respondents said they were using taxis less, while only 9% said they were taking taxis more often than before.

The main reasons cited by people for taking taxis less is that they are not socialising as frequently as before and because they have lower levels of disposable income.

There were mixed results over whether people regarded taxis as good value for money with 34% agreeing, while 35% disagreed.

Research conducted for the NTA shows 52% of all taxi journeys were for “social” reasons. Demand for taxis is strongest on Fridays and Saturdays which account for over 50% of all fares.

The NTA noted that the results of the survey also demonstrated that alternative options are available for many people, mainly buses but also trams and trains.

It highlighted how the introduction of discounted Leap Card fares including the TFI-90 €2 fare made public transport in Dublin and particularly multi-leg journeys more affordable.

The latest figures show there were 16,526 registered taxis in February – up 2% since the last fare review in 2022 but down 7% on pre-pandemic levels.

The NTA said the number of small public service vehicles, which includes taxis and hackneys at 3.7 per 1,000 population is one of the highest per capita rates in Europe, while the rate in Dublin of 7.2 per 1,000 is far higher than other cities with a similar population.

The review showed the estimated annual running costs for a taxi based by drivers is €7,182 based on annual average travel of 49,800 kilometres. However, they have fallen slightly compared to two years ago due to reduced fuel prices.

In contrast, fixed costs have risen due to the increases in the price of vehicles.

The NTA acknowledged that labour costs – the earnings of taxi drivers which accounts for approximately two-thirds of all costs of operating a taxi– have increased by 9-11% since the last review two years ago.