Request ID: FOI-2165-2223 Date published: 20 December 2022
You asked
Dear Sir or Madam
FOI request.
Can you please tell me the exact formula used by TfL to calculate taxi tariff?
By this I mean; what are the elements used? i.e. is the retail price index used, the cost of fuel, the cost of the wheelchair accessible vehicle etc.
Please tell me the formula and list all elements with an explanation of how TfL formulate the calculation.
We answered
Our ref: FOI-2165-2223/GH
Thank you for your request received by Transport for London (TfL) on 30 November 2022 asking for information about Taxi tariffs.
Your request has been considered in accordance with the requirements of the Freedom of Information Act and our information access policy. I can confirm that we hold some of the information you require. You asked:
Can you please tell me the exact formula used by TfL to calculate taxi tariff?
By this I mean; what are the elements used? i.e. is the retail price index used, the cost of fuel, the cost of the wheelchair accessible vehicle etc.
Please tell me the formula and list all elements with an explanation of how TfL formulate the calculation.
We normally review taxi fares and tariffs in London annually and we’re currently consulting on potential changes, the consultation is available here: www.tfl.gov.uk/taxi-fares-2022 and closes on 22 December.
Taxi fares are calculated using the taxi tariffs and any authorised extra charges. The current tariff details are available here.
When we review taxi fares and tariffs we use the taxi Cost Index. This provides figures for changes to:
• Taxi drivers’ operating costs • Average national earnings
It also provides a total Cost Index figure.
The Cost Index figures are normally used when considering changes to taxi fares and tariffs.
The Cost Index components (vehicle costs, insurance, etc) and latest figures for each component are available as part of the published consultation documents:
We’ve not previously used the Retail Prices Index (RPI) or Consumer Prices Index (CPI) in taxi fares and tariff reviews but these figures are included in the document for comparison with the total Cost Index figure.
If this is not the information you are looking for, or if you are unable to access it for some reason, please do not hesitate to contact me.
If you are not satisfied with this response please see the attached information sheet for details of your right to appeal.
Yours sincerely
Graham Hurt FOI Case Officer FOI Case Management Team General Counsel Transport for London
