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From: Neil Cox
Sent: 10 August 2022 18:40
To: Lorraine Neale <LorraineNeale@maidstone.gov.uk>
Subject: Re: Consultation -fuel crisis emergency - Hackney Carriage Trade

Good afternoon Licensing,

Thanks for the e mail of 23rd June in respect of a potential extra charge on taxi fares when fuel prices surge. The price of diesel at the time of the last taxi fare increase was £ 173.9p/l and for unleaded it was £160.9p/l. Currently the price for both is £ 183.9p/l and £ 175.9p/l respectively. The last increase was made with the backdrop of a substantial increase in the cost of fuel since the start of the pandemic. However since then it surged up to  £ 197.9p/l and £ 187.9p/l and then fell back as above. 

The nature of these things is that they are unusual and often fairly short lived. If this cost of fuel is sustained then we will no doubt come back for a fare increase in due course which will negate the need for a temporary fare increase.

This of course does not take into account the rising cost of electricity which as you know is about to rise by upwards of 60% after having doubled in the past 2 years. This affects the hybrid and fully electric fleet. Right now many charging points are free but in due course this will change and we will be paying through our energy bills for this service. In terms of this group of vehicles it is too early to tell what the taxi trade might want. 

A simple rule of thumb might be to say that if the cost of fuel or electricity rises by more than 10% in less than a month then a Hackney Carriage should be able to charge an extra 20p per fare to cover the extra cost of energy. Once this cost falls back, assuming it does, then the extra charge falls away. Each vehicle would have to inform its custom of this charge rather like the current fare chart.

Kind Regards

Neil Cox

Chair Taxi Association.