The National Transport Authority (NTA) has proposed a 9% hike in taxi fares this year in response to the rise in operating costs. The decision largely stems from the impact of increased labour expenses, as well as the growing costs involved in vehicle acquisition and financing.
The NTA conducts an extensive review of the maximum permissible taxi fares every two years, analysing the charges and obstacles hindering the sector. The review carried out in 2022 sanctioned an average fare augmentation of 12%.
In 2022, a 17% fare surge was documented for night-time taxi services, aimed at motivating drivers to work during periods of high demand. Nonetheless, the latest findings indicate a notable withdrawal in the usage of taxis during the hours of 8 pm to 6 am.
The evaluation of fares this year revealed consistent economic progress in Ireland, imposing its own inflatory influences. Concerns such as inflation, cost of living, fluctuating fuel prices and energy availability had a significant impact on the review’s outcome.
A survey initiated by the NTA confirms that taxi demand is being influenced by Ireland’s living costs. The report indicates that the percentage of taxi users has declined from 83% in 2022 to 81%, and 43% vocalised using taxis infrequently.
Respondents attributed the decrease in taxi use to less frequent social activities, due to a reduction in disposable income. In addition to this, an enhanced night-time public transportation service, especially around Dublin, has been a contributing factor. However, those who are still opting for taxi services report that their journeys are increasingly becoming shorter in duration.