New taxi fares come into effect on Saturday 4 April 2009
The increase of 3.4 per cent will help drivers maintain their earnings and cover increased operating costs.
Fares are calculated by Transport for London (TfL) using a long established, retrospective cost index based on national average earnings and taxi operating costs.
Operating costs have gone up by 3.7 per cent this year, with an increase of 4.1 per cent in the cost of diesel fuel.
Operating costs increase
The TfL Board approved the new taxi fares on 10 February, following consultation by the Public Carriage Office (PCO) with the taxi trade and others, including London TravelWatch.
The Board has also authorised a 40p metered extra to be charged only if fuel prices hit 147.1p per litre between 4 April 2009 and 1 January 2010.
The additional charge, if it is introduced, will be added to the meter by the driver at the start of each trip.
The average price of diesel was listed as 100.1p per litre as of 2 April 2009.
Notes to editors:
- The PCO, part of TfL, is responsible for licensing and regulating London's taxi and private hire services
- Taxi fares are worked out according to one of three tariffs. These are as follows:
- Tariff 1 - Monday to Friday, between 6:00 and 20:00
- Tariff 2 - Monday to Friday, between 20:00 and 22:00, and weekends between 6:00 and 22:00
- Tariff 3 - nightly between 22:00 and 6:00 and on public holidays
- Taxi fares are higher in the evenings and late at night to encourage more drivers to work at these times, improving the safe travel options available to support London's late-night economy
* Apparent discrepancies are due to rounding effects
- The Retail Price Index inflation level was 3.0 per cent and the Consumer Price Index inflation level was 4.1 per cent when the fares proposal was finalised
- The 3.4 per cent increase is in line with the increase in the cost index in use since 1981. The index, agreed with the taxi trade, combines changes in operating costs with national earnings to produce a change in average fares
- Fuel prices are measured by the Arval index: http://online.arval.co.uk/index.cfm?fuseaction=fuelPricing.fuelhome
- The average price of diesel was listed as 100.1p per litre as of 2 April 2009