Request ID: FOI-2371-2223 Date published: 20 January 2023
You asked
F/on from FOI-2165
Thank you for this information, it is very helpful but doesn’t satisfy the question:
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.
The information that I am looking for is not just the components used to calculate the tariff. I am also looking for the formula used to calculate the tariff.
By way of an example the calculation formula might be the vehicle cost x the fuel cost – the taxicard = the £3.40/price per mile.
In short, I am requesting how do TfL get to an amount for each cost index component; by way of an example: TfL have the yearly “Vehicle Cost” in May 2022 as £7,873.33 how does TfL get to this figure? My taxi vehicle cost is £340 per week (£17,680 per year).
TfL’s Cost Index document here: https://ehq-production-europe.s3.eu-west-1.amazonaws.com/53ae97c13c8e9f60cfc444c57729423eb47e8389/original/1667817909/32561edc0fbd9f0d8d66712c11d4adae_the-cost-index.pdf?X-Amz-Algorithm=AWS4-HMAC-SHA256&X-Amz-Credential=AKIA4KKNQAKICO37GBEP%2F20221220%2Feu-west-1%2Fs3%2Faws4_request&X-Amz-Date=20221220T094504Z&X-Amz-Expires=300&X-Amz-SignedHeaders=host&X-Amz-Signature=5aab6b50d6d6e3e1667adf8d9ae20fb49b68f6b461b5cd610a925d313d752fb4
The public cannot consult on something without knowing the formula for the calculations.
We answered
Our ref: FOI-2371-2223/GH
Thank you for your request received by Transport for London (TfL) on 20 December 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 reviewing responses to our recent consultation which closed on 22 December 2022.
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 figures for taxi drivers’ operating costs show the changes since the Cost Index was last updated rather than the specific costs for each component for every licensed taxi driver.
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
