UAE | Traffic and Transport
Hike in Dubai taxi fares proposed
Officials say suggested increase in Dubai taxi fares aims to cover recent rise in fuel prices
- By Jay B. Hilotin, Chief Reporter
- Published: 00:00 September 2, 2010
- Image Credit: Xpress/Javed Nawab
- Early this year, the UAE unveiled plans to gradually reduce subsidies on petrol prices to match international market levels
Dubai: Plans to hike Dubai taxi fares are awaiting the green light from authorities following similar moves in other emirates, senior officials of Dubai Taxi Corporation (DTC) told XPRESS.
Abdul Aziz Malik, DTC chief executive officer, said that the two rounds of fuel price increases had affected their bottomline. "It (petrol price rise) has raised our costs," confirmed Malik.
He, however, stressed that only the Roads and Transport Authority has the final say on any taxi fare increase in Dubai.
Yousuf Mohammad Al Ali, Director of Fleet Operations Department at DTC, said that the proposed fare increase, if approved, would cover the recent fuel price increases.
"We have submitted the proposal to our management. The level of fare increases will cover recent fuel price hikes," said Al Ali.
Early this year, the UAE unveiled plans to gradually reduce subsidies on petrol prices to match international market levels.
Pump prices for E-Plus, the lowest petrol grade, has increased nearly 28 per cent since April this year and now costs Dh1.61 per litre, although the state-owned oil firm Adnoc denied plans of a third price increase later this month on August 24.
Lowest in the world
DTC has a fleet of over 3,500 vehicles. Al Ali said even if the taxi fares were increased, Dubai's charges would still be among the lowest compared with the world's major tourist hubs. "You have to compare apples to apples," said Al Ali. "Taxis Dubai are relatively inexpensive compared to some developing and developed countries."
Dubai charges a uniform fare for both off-peak or peak hours.
In contrast, the peak-hour fare in Singapore, is 71 per cent more than off-peak hours. "They [Singapore] impose various surcharges such as peak-hours surcharge, city-area surcharge, late-night surcharge and airport surcharge. Dubai does not."
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