North Yorkshire Taxi Fares Could Rise Following Fuel Price Spike

North Yorkshire Council is set to review a proposed five per cent increase in maximum taxi fares to help drivers cope with soaring petrol and diesel costs.

North Yorkshire Council’s executive members will meet on Tuesday, May 12, to discuss a potential five per cent hike in the maximum fares that hackney carriage drivers are permitted to charge.

The driving force behind the proposal is the escalating cost of fuel, which officials say has been exacerbated by ongoing conflict in the Middle East. According to a council report, there is currently no indication that pump prices will drop in the near future.

Data presented to the local authority highlights a stark jump in running costs since the existing fare limits were established in July 2024. The price of unleaded petrol has climbed by more than seventeen per cent, rising from 134.64 pence per litre to 158.31 pence. Meanwhile, diesel has seen an even steeper surge of over forty-two per cent, jumping to 191.54 pence per litre.

Alongside rising fuel costs, the council report points out that the broader cost of living has also impacted drivers, with consumer price inflation running at three per cent over the past twelve months. Despite this, the average annual cost of maintaining a petrol or diesel vehicle has remained steady at three thousand, three hundred and fifty-six pounds.

To illustrate the financial impact, officials calculated that a typical taxi achieving forty miles to the gallon covers around eight point seven miles per litre of fuel. The suggested five per cent bump to the standard daytime tariff would effectively generate an extra ninety-seven pence of income for every litre of fuel burned, helping to offset the mounting forecourt prices.

If the executive committee green-lights the changes, standard daytime journeys between 7am and 10pm will see the maximum mileage rate increase from £2.22 to £2.33. Hourly waiting charges during this period would also shift from £20.23 to £21.24.

For night-time trips between 10pm and 7am, as well as on public holidays, the permissible cost per mile would rise from £3.15 to £3.31. The waiting time fee for these hours is slated to move from £28.90 to £30.35 per hour.

The steepest tariff, applied during the Christmas and New Year period, would see mileage limits go up from £4.20 to £4.41, with waiting times reaching £40.47 per hour, up from the current £38.54.

The local authority emphasises that these caps only apply to hackney carriages, which are vehicles that can be hailed on the street or picked up at a taxi rank. Private hire vehicles, which must be booked in advance, are free to determine their own pricing structures, and passengers are advised to confirm the cost before setting off. Council documents also note that hackney carriage drivers retain the right to charge below the maximum limit if they choose to do so.

Should the executive approve the new rates, a statutory notice will be published in the local press, triggering a minimum fourteen-day period for public objections. If any complaints are lodged, the council will have up to two months to reconsider the plans before they are officially implemented.

The report, prepared by the council's head of licensing, Gareth Bentley, alongside assistant director for regulation and harbours, Callum McKeon, outlines that maintaining a fair income for drivers is crucial for public safety. The document stresses that cab drivers play an essential role in the night-time economy by ensuring people get home securely.

North Yorkshire Council’s executive member for licensing, Councillor Richard Foster, said:

"We carry out regular reviews of taxi fares to incentivise those working in the trade.

The sector provides a vital boost to the economy, and is key for protecting our communities, whether it be taking children to school or transporting residents or visitors to their destination at night safely.

As a licensing authority, we set maximum fares to provide certainty, consistency and protection from unfair or unreasonable charges.

We appreciate that people may face a higher cost of taking a taxi, but we need to factor in the increase in the price of fuel since the charges were last changed two years ago."