Iran Conflict Prompts North Yorkshire Council to Propose Taxi Fare Increase

North Yorkshire Council is moving forward with a proposal to increase maximum hackney carriage fares by 5% in response to a surge in fuel costs driven by the ongoing conflict in Iran.

The decision, discussed during an Executive meeting on 12 May 2026, aims to balance the economic survival of the taxi trade with the financial pressures facing passengers,.

Councillor Simon Myers opened the discussion by acknowledging the direct link between international instability and the local economy. He stated:

"The situation in Iran and the straits of Hormuz, the impact on fuel prices that has a substantial impact on our taxi trade. We had representations from the trade and we thought that it was right that we took action. So here we are today effectively to agree in principle a 5% increase.

Although it may seem very frustrating to us and indeed to the taxi trade We cannot just unilaterally alter the maximum fares chargeable and there is a procedure that we have to go through and the matter has to go out for consultation."

However, some members of the trade feel the proposed 5% increase is insufficient given the scale of the financial "hardship" they are facing. Taxi driver Mr Fieldman expressed the industry's frustration regarding the timeline of the council's response and the severity of the price hikes. He told the Executive:

"Whilst the trade appreciate that you are considering the tariff increase due to the devastating fuel price increase that has come about with the ongoing war in Iran, the recommendation by council officers does not go far enough in assisting the trade with the hardship they have been hit with.

Firstly, the Iran war started on the 28th of February this year. We are now on the 12th of May and have had to endure the significant and almost immediate increase the fuel stations bestowed upon us without any emergency assistance from this council in trying to protect its local taxi trade. Whilst fuel prices steadily increased, sometimes on a daily basis,"

Data from the council’s report highlights the stark reality of these costs, noting that diesel prices have soared by 42.26% since the last fare review in July 2024, rising from 134.64p to 191.54p per litre by mid-April 2026. Petrol prices have also seen a significant rise of 17.58% during the same period.

Responding to the trade's concerns about the speed of the intervention, Councillor Myers explained that the council is bound by strict legal frameworks,. He noted:

"We recognize both the strength of feeling within the trade and the very real pressures currently being faced particularly around fuel prices, insurance and wider operating costs, some of which have increased significantly in recent months. Rising fuel costs have been a key factor in prompting this review.

The council has responded as quickly as possible to these pressures, but it must be acknowledged that there are no temporary or emergency mechanisms to vary the tariff. As such, the statutory process including public notices must be followed."

The council must now navigate a statutory consultation process to allow for public objections,. Councillor Myers emphasised the importance of maintaining a service that remains accessible to the public, particularly those in more isolated areas of North Yorkshire. He stated:

"We must support a sustainable and viable trade particularly given its importance to rural communities while at the same time ensuring that fairs remain fair and reasonable for passengers. The proposal is to apply a 5% increase across the tariff which officers consider represents a proportionate and evidence-based response to the current situation."

Under the new proposal:

• Tariff 1 (daytime) would increase from £2.22 to £2.33 per mile.
• Tariff 2 (night-time/bank holidays) would increase from £3.15 to £3.31 per mile.
• Tariff 3 (Christmas/New Year) would increase from £4.20 to £4.41 per mile.

If no objections are received following the public notice period, the new fares will come into effect automatically,.