Consumers are likely to pay higher taxi fares soon, as local associations of taxi drivers mull raising their fares due to high oil costs and commodity prices.
"We will reach a consensus on whether to add NT$10 or NT$15 per trip within this week and file the application with the city government," Chen Yuan-ming (陳遠明), director-general of the Taipei City Taxi Transportation Federation (台北市計程車公會), which represents more than 1,000 taxi companies and 20,000 taxi drivers in the city, said yesterday.
If the proposal is passed by authorities, taxi fares, which are currently set at NT$70 at flagfall, which includes the first 1,65km, will be changed to NT$80 or NT$85. The new rate will also be adopted by cab drivers registered in Taipei County, Keelung City, Ilan County and Taoyuan County, which are joint-operation zones with Taipei City.
"Rising oil prices have been eating into our profits for a long time, and increasing consumer prices are placing another burden on our members," Chen said.
The nation's two oil refiners, Chinese Petroleum Corp (中油) and Formosa Petrochemical Corp (台塑石化), have increased wholesale oil rates several times since last year due to rocketing crude oil prices, causing retail prices to surge from about NT$18 per liter to about NT$23.9 per liter currently.
The consumer price index last month stood at 101.95 points, a 0.3 percent increase from the previous month and 2.31 percent higher than a year ago, the nation's statistics agency reported last week.
Chen also argued that in accordance with city government regulations, taxi fares should be reviewed every two years, and that the current rates, which have been in effect since Dec. 1, 2000, are outdated and comparatively low compared to the rise in consumer prices over the past four years.
The sagging taxi business is a third reason that the association is considering raising rates, as the vacancy rate among its members has reached 70 percent, meaning that cabs are loaded for only 3km of every 10km they drive, he said.
The proposed increase is likely to be passed, considering rising operating costs for taxi drivers, said Lee Hui (
According to a report conducted by the division, taxi drivers' operating costs -- including fuel, maintenance, insurance and taxes -- have increased since the last rate adjustment date, adding more than NT$10 per trip in costs, Lee said.
Flattening profits have forced many drivers to quit the business over the past few years, Lee said, adding that the number of registered taxi drivers in Taipei City had dropped from 36,686 at the end of 2000, to 33,661 at the end of February.
The proposal will be reviewed by a government committee, and then the city council, which will likely take more than one month, she said.
In addition to taxi fares, domestic airfares are also set to increase because of high oil prices, with a possible increase of 9.7 percent, Billy Chang (張國政), director-general of the Civil Aeronautics Administration, said yesterday. But Chang said the administration has no timetable for implementing the new rates.
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