Dubai and Sharjah taxi price hikes explained

The rise in passenger charges will be calculated on fuel usage per kilometre, Dubai’s RTA says

Staff Report

Dubai’s Roads and Transport Authority has increased taxi fares amid rising fuel prices.

The rise in passenger charges would be calculated on fuel usage per kilometre, it said.

The Dh12 minimum fare will remain unchanged, the public transport body told The National on Saturday.

RTA did not state what the increase was but it is understood to be about 10 per cent, with the fare rising from Dh1.99 per km to Dh2.21 per km.

Petrol price in the UAE

will increase in July as global oil prices remain above $100 a barrel.

“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 km,” an RTA spokeswoman said.

“We have implemented a forethought increase without any impact on the opening/booking fare charges.”

The authority did not disclose how much the per km charge for journeys will increase by.

Uber confirms fare rises

Global ride-hailing operator Uber earlier confirmed it was increasing its fares in Dubai in light of surging fuel costs.

The company will charge as much as 11 per cent more for some trips, it said in an email to customers, Bloomberg reported.

Uber said in a statement to The National the decision had been taken in regards to rising fuel prices and followed an increase in taxi fares set out by Dubai’s Roads and Transport Authority.

“We have increased Uber’s recommended fare prices in Dubai, in line with local pricing regulations in light of the increase in taxi prices mandated by the RTA,’ an Uber spokesman said.

“The increase aims to help cushion driver earnings from the impact of rising fuel prices and the current economic situation.”

Sharjah to revise fare costs each month

Sharjah is to set taxi fares each month based on the latest fuel prices in the country.

The move — which comes into effect this month — will allow for passenger charges to be increased or reduced depending on current petrol costs.

The decision was made by Sharjah’s Executive Council and will be implemented by the emirate’s Roads and Transport Authority.

The RTA said the flexible pricing of taxi-meter tariffs was “in line with the current economic changes after the liberalisation of the price of fuel”.

It said revised charges for July would be issued next week.

According to the Sharjah RTA customer helpline, the minimum fare for a taxi journey is currently Dh17.5, with a charge of Dh1.62 per subsequent kilometre.

Motorists across the Emirates have been paying significantly more in recent months, with a 10 per cent increase in March, 16 per cent in April and a 13 per cent rise last month.

The prices announced by the UAE Fuel Price Committee in June were the highest since they were liberalised in 2015 to allow them to move in line with the market.

In 2020, prices were frozen by the committee at the beginning of the coronavirus pandemic. The controls were removed in March 2021 to reflect the movement of the market.

Petrol prices were already rising before the war in Ukraine but the conflict has worsened the situation.

Russia is one of the world’s largest oil exporters but has had a series of sanctions imposed over its actions in Ukraine.

In the UK, a litre of petrol this week hit a high of £1.91, while diesel reached a record of £1.99 a litre.

Late last month, the US reported a record $5 average for petrol prices as the country grapples with its highest levels of inflation and increased demand. Prices at the pump were as high as $6 in California and Washington.

Read more:https://theleadingnews.com/2022/07/01/uae-raises-fuel-prices-for-july-2022/

July petrol prices

• Super 98: Dh4.63 — an increase of 11.5 per cent from Dh4.15 in June

• Special 95: Dh4.52 — an increase of 12.1 per cent from Dh4.03 in June

• Diesel: Dh4.76 — an increase of 14.9 per cent from Dh4.14 in June

• E-plus 91: Dh4.44 — an increase of 12.1 per cent from Dh3.96 in June

Best fuel-efficient cars — in pictures