Dubai taxi fares increase in May after fuel price hike

Image credit: DTC/X

Taxi fares in Dubai have risen by 12 fils per kilometre due to four consecutive months of petrol price hikes.

The escalating cost of petrol in the UAE since February has led to this fare adjustment.

For instance, the price of Special 95 has surged from Dh2.71 per litre in January to Dh3.22 per litre presently, marking an increase of 51 fils since the beginning of the year.

As per the Dubai Taxi Company (DTC) website, the new per kilometre charge for taxis in Dubai now stands at Dh2.09, up from the previous rate of Dh1.97 per kilometre.

Base taxi fare

Explaining the rationale behind the fare adjustment, the Roads and Transport Authority (RTA) emphasised that changes in taxi fares are directly influenced by fluctuations in fuel prices within the local market.

This dynamic pricing model is calculated based on fuel usage per kilometre.

This recent adjustment follows a significant reduction in taxi fares in January 2023, when the per kilometre fare was lowered by 22 fils from Dh2.19 to Dh1.97.

However, the base fare for a taxi ride has not changed and remains Dhs12.

DTC earnings

The DTC reported an increase in revenue and profits for the first quarter of this year. With profit after tax reaching Dh108m, up from Dh94m in 2023, the company attributes this growth to completing 12 million trips with its taxis and limousines.

Mansoor Alfalasi, the chief executive of the Dubai Taxi Company, highlighted the company’s commitment to supporting Dubai’s mobility landscape by expanding its fleet and adopting technologies to enhance operational efficiency and utilisation.

Read: UAE announces petrol, diesel prices for May 2024