Taxi fare in Dubai has increased by 12 fils per kilometre due to rising petrol prices in the UAE. The price of Special 95 petrol has gone up by 51 fils since January, from Dh2.71 per litre to Dh3.22 per litre. The Dubai Taxi Company website now lists the per kilometre charge for taxis as Dh2.09, up from the previous rate of Dh1.97 per kilometre. This means that customers taking a taxi from Al Barsha to Dubai World Trade Centre will have to pay around Dh3 more for the 25-km journey.
The fare hike is only related to fuel usage per kilometre, and the flag-down rate remains the same. Other modes of public transport in Dubai, such as the Metro, Tram, and buses, have not seen any changes in their fares. This increase in taxi fares comes after global oil prices rose to between $83 and $87 per barrel this month, up by an average of $4.53 compared to March. The Roads and Transport Authority (RTA) has stated that changes in taxi fares are dynamic and based on fluctuating fuel prices.
In contrast to Dubai, the Ajman Transport Authority has increased taxi fares by 4 fils since March, bringing the rate to Dh1.83 per kilometre. There have been no fare increases in Sharjah, but recent oil price hikes have impacted some routes between Dubai and Sharjah, as well as intercity prices. Bus fares in Sharjah have also gone up, with some routes seeing an increase of up to Dh3 since March 1. For example, the bus fare from Rolla in Sharjah to Mall of the Emirates in Dubai via Al Quoz has risen from Dh17 to Dh20.
The last significant taxi fare increase in Dubai was in July 2022 when global oil prices were above $100 per barrel, resulting in a 20 fils hike in taxi fares from Dh1.99 per km to Dh2.19 per km. The current increase is attributed to the fluctuating fuel prices in the local market. In January 2023, taxi fares in Dubai were decreased by 22 fils, from Dh2.19 to Dh1.97 per kilometre. This shows that taxi fares in Dubai are subject to dynamic pricing based on fuel costs per kilometre.
Overall, the increase in taxi fares in Dubai is a response to the rising petrol prices in the UAE. While global oil prices have impacted transport costs in various emirates, Dubai has seen a specific focus on taxi fares due to the reliance on fuel for these vehicles. The RTA’s explanation of dynamic pricing for taxi fares reflects the need to adjust costs based on market fluctuations, ensuring fair pricing for both customers and taxi operators. As oil prices continue to fluctuate, it is likely that taxi fares in Dubai and other emirates will continue to be adjusted accordingly.
