The NTA has initiated a public consultation on the proposed fare hike, which comes after its regular biennial review of industry charges.

The recommended maximum fare increase of nine percent considers the potential impact on consumer demand for taxis.

This recommendation follows a 12 percent average fare increase approved in the previous review in September 2022. At that time, night-time fares were raised by 17 percent to encourage drivers to operate during peak night-time demand, and part of the increase compensated drivers for providing cashless payment options.

The latest review, conducted between November 2023 and March 2024, evaluated factors like inflation, fuel prices, the general economic situation, and the increased availability of public transport in Dublin and surrounding areas. The NTA noted “sustained, steady economic growth in Ireland with resultant inflationary pressures.”

However, the NTA also highlighted the economic uncertainty faced by taxi drivers over the past decade, including supply chain issues from Brexit affecting second-hand vehicle purchases and the Covid-19 pandemic’s travel restrictions.

A household survey commissioned by the NTA indicated that the cost of living is affecting taxi demand, with only 81 percent of respondents using taxis, down from 83 percent previously. Additionally, 43 percent of respondents reported using taxis less, while only nine percent used them more often. The main reasons for reduced taxi use were less frequent socializing and lower disposable income.

Opinions on whether taxis offer good value for money were mixed, with 34 percent agreeing and 35 percent disagreeing. The survey revealed that 52 percent of all taxi journeys were for social reasons, with the highest demand on Fridays and Saturdays, accounting for over 50 percent of fares.

The NTA noted that alternative transportation options, such as buses, trams, and trains, are available to many people, highlighting the affordability of discounted Leap Card fares, including the TFI-90 €2 fare for multi-leg journeys in Dublin.

As of February, there were 16,526 registered taxis, a two percent increase since the last fare review in 2022 but a seven percent decrease from pre-pandemic levels. The NTA stated that Ireland has one of the highest per capita rates of small public service vehicles in Europe, with Dublin’s rate significantly higher than other similarly populated cities.

The review estimated annual running costs for a taxi at €7,182 based on an average annual travel of 49,800 kilometres, slightly down from two years ago due to lower fuel prices. However, fixed costs have risen due to increased vehicle prices. The NTA acknowledged that labour costs, accounting for approximately two-thirds of taxi operating costs, have risen by nine to eleven percent since the last review.