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Cab fares likely to go up soon

DUBAI/SHARJAH/ABU DHABI — The inevitable hike in taxi fares across the country may come sooner than later, following the Dh1.50 increase in pump rates of petrol.

All indications are that exercises are on in Abu Dhabi, Dubai and Sharjah to revise cab fares, which can be expected in the next couple of weeks, or even earlier.

Franchisee taxi companies of Dubai Transport Corporation (DTC) are all geared up to increase the fares as soon as they get the nod from the corporation, though DTC officials told Khaleej Times that no decision had been taken yet. They, however, made it clear that the revision could be expected in the near future.

Abu Ammar, General Manager of Dubai’s Metro Taxi, said: "We work under the umbrella of Dubai Transport, and any increase in fare will have to come from them."

He said an increase was definitely on the cards because the standard of the taxi service had to maintained. "The Board of Directors of Dubai Transport are expected to meet in a week. and they might take a decision to increase the fares," he said.

Ammar, however, was not sure on how much the increase would be. "We have no idea and we are waiting for the decision," he added.

P S M Habibulla, Joint Managing Director of CARS Taxi, said: "We cannot increase the fare without consent from our regulating body, i.e. Dubai Transport. Increase in taxi fares is expected because internationally, the price of petrol has gone up by Dh6, and is expected to increase further."

CARS Taxi operates as Citi Taxi in Sharjah, working under the Sharjah Transport Corporation. "In Sharjah too, we have not received any notification from Sharjah Transport. Usually, Sharjah follows in the footsteps of Dubai, so an increase in fares in Dubai would mean that fares would be increased in Sharjah too," Habibulla said.

Meanwhile, residents, who do expect a hike in cab fares, believe that the revision could be back-breaking. "I am sure that taxis will increase their fares because petrol prices have gone up, and are expected to increase further. But I am not sure how I will manage my budget," Rosie, a domestic worker said, adding: "I have already asked my employer to increase my salary, but life is getting tough in Dubai."

In Abu Dhabi, the Traffic and Licensing Department of Abu Dhabi Police has already started work on the revision of taxi fares, since the 5000-odd cabbies, who had sustained the two earlier hikes in petrol prices, have raised a hue and cry.

Sources in the department said the authorities were aware of the problems faced by people in the taxi business. The department, however, has not yet decided on the quantum of increase and the date when the new fares would be introduced.

The Traffic and Licensing Department, which regulates around 5000 licensed cabs in the emirate, is in consultation with the Ministry of Economy and Planning to seek its approval for the revision.

Taxi is a major source of commuting in the capital, for its hundreds of thousands residents. It is regarded as the cheapest means of transport.

Dilawar Khan, a taxi driver, said he earns around Dh130 a day, after putting in 14 hours, starting from 5.30am with a two-hour lunch break.

"I have to give Dh55 to the owner of the taxi, and from what remains, I have to pay for petrol, repairs and maintenance, besides traffic fines," he said, adding that the petrol price hike had really affected the once-lucrative taxi business.

Another cabbie, pointing out that fares had remained unchanged for over 20 years, said the recent hike had hit them hard.

Rahbar Khan, a taxi driver, also pointed out to the disparity in fares in various emirates. "In Dubai, fare for a four km ride costs around Dh10, while in Abu Dhabi, it is Dh5. This is where we lose out completely," he said.