Operations

Several Cities Now Requiring Taxi Fuel Surcharges

Posted on July 2, 2008 by LCT Staff - Also by this author - About the author

NEW YORK CITY – Several of the largest business travel destinations have introduced or are considering introducing taxicab fuel surcharges in response to increasing gas prices. Chicago, Philadelphia, Washington, D.C., and Miami-Dade County all implemented such surcharges in the past few months, and Las Vegas and surrounding Clark County are implementing one in early July. Some other cities, such as Boston, Dallas, Los Angeles, and Seattle, previously imposed some kind of taxi fuel surcharge. New York City does not have a fuel surcharge and does not plan to introduce one in the future, said a spokesperson for the city's Taxi and Limousine Commission.

Fuel surcharges have become standard operating procedure for chauffeured transportation companies, and their use in the taxicab industry is growing as well, said Dave Kilduff, managing director of ground transportation for Carlson Wagonlit Travel's CWT Solutions Group. "I don't think anybody's going to change any action from it. People are going to become aware of it," he said.

Kilduff anticipated that fuel surcharges would remain unbundled to increase overall rates. "Before, fuel was always there, but it was included," he said. "The total is growing. All we are doing is unbundling."

Miami-Dade County in June implemented a fuel surcharge on all trips in the county based on the average national gas prices reported by the Energy Information Administration. If the price of gasoline remains between $3.50 and $3.99, the fuel surcharge is $1 per trip. If gas prices reach $4 a gallon, the surcharge will be $1.50. Gas prices have to be in place for three weeks before an increase or decrease can go into effect.

"Our taxicab drivers here are also experiencing the effects of the rising gas prices and it's hurting them economically," said Sonya Perez, spokesperson for the Miami-Dade Consumer Services Department. "It's a way to offset the increasing costs that they have to pay for gas. This is a way to help them out."

Philadelphia on June 2 implemented a new 50-cent fuel surcharge as well as a rate increase that included rolling its previous 40-cent fuel surcharge into the meter-drop rate, now $2.70. "The fuel prices were just increasing so rapidly over the past couple of months," said Jim Ney, director of the taxicab and limousine division of the Philadelphia Parking Authority.

Chicago put a new fuel surcharge into effect in April. It is currently a $1 surcharge per trip, which will remain in effect as long as gas prices for the Chicago region stay above $3.20 for seven consecutive days. If gas prices fall below $3.20 but stay above $2.70, the surcharge will drop to 50 cents.

Source: Business Travel News

View comments or post a comment on this story. (0 Comments)

More News

New Online Limo Service Brokerage Offers Discounted Rides

The two-year-old company racks up results and fans as it helps operators fill unused vehicles and seats.

Celebrity Worldwide Launches New Charter Jet Website

Clients of the Philadelphia-based company can book seamless air travel worldwide through an easy, more informative site.

No Way Uber Worth $70 Billion, Investor Says

Meanwhile, the feds have penalized the TNC for misleading consumers on its privacy practices.

Updated Uber For Business Gives Companies More Control

The TNC's refreshed platform will help streamline corporate ride-hail use, especially for unmanaged travel programs.

Dream Team: How One Company Keeps Clients And Staff

eNews Exclusive: Concierge Limousine along California’s Gold Coast knows that without happy, loyal employees, an operation will fall apart.

See More News

Facebook Comments ()

Comments (0)

Post a Comment

Submit

Blog

See More

LCT Store

LCT Magazine - August 2017 $12.95 MILLENNIALS/FAST 40 ISSUE COVER STORY: * How to Score & Keep The Best Young Talent * *



Connect

Experience the three annual industry events for networking for business, showcasing vehicles and products, and getting the tools for success.

Read About Your Region

What’s Happening Near You?
Click on any state to see the latest industry news and events in that region.

More From The World's Largest Fleet Publisher

Automotive Fleet

The Car and truck fleet and leasing management magazine

Business Fleet

managing 10-50 company vehicles

Fleet Financials

Executive vehicle management

Government Fleet

managing public sector vehicles & equipment

TruckingInfo.com

THE COMMERCIAL TRUCK INDUSTRY’S MOST IN-DEPTH INFORMATION SOURCE

Work Truck Magazine

The number 1 resource for vocational truck fleets

Metro Magazine

Serving the bus and passenger rail industries for more than a century

Schoolbus Fleet

Serving school transportation professionals in the U.S. and Canada

Please sign in or register to .    Close