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Taxi and bus companies consider price increases

Following Wednesday's gas price increases, Taipei's taxi and bus companies are thinking about raising their prices, according to a report yesterday.

Taxi fares in Taipei were last adjusted on Dec. 1, 2000. Last year the city government considered raising the flag fall rate by as much as NT$25, but in the end, the vehicle license tax and the fuel tax were reduced instead, reported the Chinese-language United Evening News.

The flag fall rate refers to the minimum charge levied on acceptance of a fare.

Association of Taxi Operators director Chen Teng (陳燈) was quoted as saying that his group was leaning toward maintaining the current flag fall at NT$70, but shortening the distance before the meter starts ticking after flag fall from 1.5km to 1.3km, and then decreasing the following increments from 300m to 250m. This would amount to a 12 percent increase in fares.

Taxi Drivers' Labor Union director Wu Ching-fu (吳慶輔) said increasing the flag fall rate would be unfair to customers traveling short distances. He added that another option suggested by his union was to apply the current night-time fares around the clock. This would result in an increase of approximately 20 percent.

The United Evening News report said that as the different taxi associations and unions were not in agreement, they would hold a meeting today in an attempt to agree on a single proposal to be submitted to the Taipei City Government.

Bus operators increased their fares for the elderly, disabled and students last year. However, the Bureau of Transportation under the Taipei City Government increased its subsidies to bus operators by the same amount, so that ticket prices would not be affected.

Taipei Center for Bus Operations chief Chen Chiung-chung (陳瓊忠) said the cost of diesel had increased from NT$18 per liter in 2004 to the current NT$23.5 per liter.

Since fuel contributes 21 percent of bus operators' costs, ticket prices would need to be increased by at least NT$3, Chen said.
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