Taxi fares look set to increase by approximately 9% later this year after the National Transport Authority recommended a hike in fares to reflect the cost of operating a taxi.
The NTA has launched a public consultation on the proposed fare increase following its regular two-yearly review of charges in the industry.
It has recommended a maximum fare increase of 9%, given the potential impact that price rises could have on consumer demand for taxis.
Its latest recommendation follows an average increase in taxi fares of 12%, approved following the previous review in September 2022.
Night-time fares at the time were increased by 17% to incentivise drivers to operate during the peak demand time of the night-time economy.
A portion of the increase was used to compensate taxi drivers for the requirement to provide cashless payment facilities in their vehicle.
The latest review, which was carried out between November 2023 and March 2024, examined the impact of inflation, fuel prices, the general economic situation, and increased public transport availability in Dublin and surrounding areas.
The NTA said it showed “sustained, steady economic growth in Ireland with resultant inflationary pressures".
However, the NTA also observed that uncertainty was the defining feature of the economic climate faced by taxi drivers over the past decade, including supply-chain issues resulting from Brexit, which affected the purchase of second-hand vehicles from the UK, and the covid-19 pandemic, which imposed major restrictions on travel.
It pointed out that the results of a household survey commissioned by the NTA show the cost of living was affecting the demand for taxis, with the number of people who said they used taxis down to 81% from 83% in a previous survey.
In addition, 43% of respondents said they were using taxis less, while only 9% said they were taking taxis more often than before.
The main reasons cited by people for taking taxis less often are that they are not socialising as frequently as before and because they have lower levels of disposable income.
There were mixed results regarding whether people regarded taxis as good value for money, with 34% agreeing, while 35% disagreed.
Research conducted for the NTA shows 52% of all taxi journeys were for “social” reasons.
Demand for taxis is strongest on Fridays and Saturdays, which account for over 50% of all fares.
The latest figures show there were 16,526 registered taxis in February, up 2% since the last fare review in 2022 but down 7% on pre-pandemic levels.
The NTA said the number of small public-service vehicles, which include taxis and hackneys, at 3.7 per 1,000 population is one of the highest per capita rates in Europe, while the rate in Dublin of 7.2 per 1,000 is far higher than other cities with a similar population.