The last time there was a substantial taxi fare increase was back in July 2022, following a series fuel price hikes

Taxi fare in Dubai has gone up by 12 fils per kilometre, following four consecutive months of petrol price hike, Khaleej Times has learned.

Petrol prices in the UAE have been rising since February this year. The price of Special 95, for example, was Dh2.71 per litre only in January but is now Dh3.22 per litre, up by 51 fils since the start of the year.

According to Dubai Taxi Company PJSC (DTC) website, the per kilometre charge for taxis in Dubai is now Dh2.09, up by 12 fils, as compared to the previous Dh1.97 per kilometre charge.

This means, a customer taking a taxi from Al Barsha to Dubai World Trade Centre would have to pay about Dh3 extra for the 25-km journey.

Fuel usage per kilometre
The fare hike is only reflected on fuel usage per kilometre. The flag-down or flagfall rate (the initial charge incurred at the start of a taxi journey) is still the same and the cost of other modes of public transport — including Dubai Metro, Tram and public buses — remain unchanged.

The last time there was a substantial taxi fare increase was back in July 2022, following a series fuel price hikes. That time, global oil prices were above $100 a barrel and taxi fare was hiked by 20 fils from Dh1.99 per km to Dh2.19 per km.

This month, global oil prices hover between $83 and $87 per barrel, up by an average of $4.53 a barrel, as compared to the price in March.

Dynamic pricing
The Roads and Transport Authority (RTA) previously explained the rationale for the fare increase, noting: “Any change in taxi fares is a dynamic change based on the fluctuating fuel prices in the local market and is calculated based on fuel usage per kilometre.”

The “dynamic change” in pricing was also felt when taxi fares in Dubai were significantly reduced in January 2023 by 22 fils — from Dh2.19 to Dh1.97 per kilometre fare.

Fare hikes in Ajman and Sharjah
Meanwhile, the Ajman Transport Authority has earlier implemented a 4-fil increase in taxi fare since March this year. Taxi fare was increased to Dh1.83 per kilometre, up from Dh1.79 in February.

There has been no taxi fare increase in Sharjah but recent oil price hikes have affected some routes between Dubai and Sharjah, as well as intercity prices.

Sharjah bus fares have increased by as much as Dh3 in some routes since March 1. For instance, the bus fare from Rolla in Sharjah to Mall of the Emirates in Dubai via Al Quoz (bus route 309) has gone up by Dh3, from Dh17 last month to Dh20 two months ago.