Soaring petrol and diesel costs prompt new taxi fare hike as Iran war crisis impacts Britons

Britons could see taxi fares hiked in the near future in a bid to offset high fuel prices caused by the Middle East crisis.

North Yorkshire Council has proposed increasing the maximum cost of taking a taxi in the region by five per cent to help the trade sector.

The council explained that maximum fares were introduced in July 2024, but since the conflict in the Middle East, the price of petrol has increased by 18 per cent, with diesel increasing by a staggering 32 per cent.

It will discuss plans this week to increase the mileage rate for taxi journeys between 7am and 10pm, from £2.22 to £2.33 per mile, and £20.23 to £21.24 per hour waiting time.

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Meanwhile, the council would look to increase the cost of taking a taxi between 10pm and 7am, including public holidays, from £3.15 to £3.31 per mile, and £28.90 to £30.35 per hour waiting time.

However, during the Christmas and New Year period, the council said it would increase fares from £4.20 to £4.41 per mile, and £38.54 to £40.47 per hour waiting time.

Councillor Richard Foster said: "We carry out regular reviews of taxi fares to incentivise those working in the trade.

"The sector provides a vital boost to the economy, and is key for protecting our communities, whether it be taking children to school or transporting residents or visitors to their destination at night safely.

"As a licensing authority, we set maximum fares to provide certainty, consistency and protection from unfair or unreasonable charges.

"We appreciate that people may face a higher cost of taking a taxi, but we need to factor in the increase in the price of fuel since the charges were last changed two years ago."

The authority noted that the revised costs would only apply to hackney carriage vehicles which can be hailed by passengers on the roadside, stand on a rank, or be pre-booked.

It explained that, besides rising fuel prices, there are other factors that affect a driver's ability to make a fair income, forcing the running costs of a petrol or diesel vehicle up to an average of £3,356.

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Official council documents detailed: "Costs relating to the statutory public notice, consultation and any subsequent meetings are recovered from licence fees charged by the council and paid by the hackney carriage trade.

"Otherwise, the financial implications are largely for taxi users, although the Council could be impacted through any taxi usage costs incurred by services."

The council added that any increase in fares would have a "financial impact on taxi-users throughout North Yorkshire, although drivers may agree to charge a lower amount than the maximum fares at their own discretion."

The rising cost of petrol and diesel has impacted drivers across the whole of the UK, with the Government being urged to repeal its fuel duty hike coming in September.

Last month, the Road Haulage Association called for an essential fuel user rebate for commercial vehicles, targeted support which would allow truck, van and coach operators to reclaim fuel duty, reducing costs and relieving inflationary pressure.

The Association also urged Chancellor Rachel Reeves to scrap the planned fuel duty hike coming in September, which will also increase in line with inflation.

RHA Managing Director Richard Smith said: "Road transport is not a fringe concern. We are crucial to the economy and to the everyday lives of people, communities and businesses across the country.

"Operators already working on razor-thin margins are seeing them wiped out. They need support now, in many cases just to survive."

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