Dubai residents will now be paying slightly more for their taxi rides. The Dubai Taxi Corporation PJSC (DTC) has announced a fare increase of 12 fils per kilometer, effective May 2024. This comes after four consecutive months of petrol price hikes in the UAE.
Fuel Prices Drive the Increase
The price of petrol in Dubai has been steadily rising since February 2024. For instance, the cost of Special 95 has jumped from Dh2.71 per liter in January to Dh3.22 currently, reflecting a 51 fils increase since the year began.
How Much More Will You Pay?
The new fare structure translates to a charge of Dh2.09 per kilometer, up from the previous Dh1.97. It’s important to note that the flag down rate (initial charge) remains unchanged. Additionally, there’s been no impact on the prices of other public transport options like the Dubai Metro, Tram, and buses.
Previous Increase and Oil Price Comparison
This is the second significant taxi fare adjustment in Dubai within a year. In July 2022, fares were raised by 20 fils per kilometer due to a similar surge in global oil prices, which were then above $100 per barrel. Interestingly, oil prices currently hover between $83 and $87 per barrel, representing an average increase of $4.53 compared to March 2024.
Impact on Different Emirates
- Dubai: The fare increase only applies to the fuel usage cost per kilometer. Flag down rates and other public transport fares remain unchanged.
- Ajman: Taxi fares increased by 4 fils per kilometer in March 2024, bringing them to Dh1.83 per kilometer.
- Sharjah: No taxi fare increase, but some intercity and Dubai-Sharjah bus routes have seen price hikes of up to Dh3.
Understanding Dynamic Pricing
The Roads and Transport Authority (RTA) has previously explained that taxi fares are adjusted dynamically based on fluctuating fuel prices. This explains the fare reduction in January 2023 (22 fils decrease) and the current increase.
Looking Ahead
The rise in taxi fares is likely a response to the sustained increase in fuel costs. It remains to be seen if these fares will remain stable or if further adjustments are on the horizon.
