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The fares of taxis in Dubai have increased by 12 fils per kilometre after a hike in gas prices for four months in a row. Since February of this year, the price of petrol has been climbing in the UAE. For example, Special 95's price has increased by 51 fils since the start of the year to Dh3.22 per litre from Dh2.71 per litre alone in January. Dubai cab fares are now Dh2.09 per kilometre, which is an increase of 12 fils above the previous Dh1.97 per km. This shows that a person travelling 25 km in a taxi from Al Barsha to Dubai World Trade Center will have to pay an extra Dh3. So, the taxi fare increases and leads to challenges among passengers, and the Dubai new taxi fare is implementing new issues for society. 

Fuel consumption per kilometre

Only fuel consumption per kilometre is impacted by the taxi fare increase. The initial fee paid at the start of a taxi ride, known as the flag-down or flagfall rate, is still the same, as is the rate of other public transportation choices, such as public buses, Dubai Metro, and Tram. The latest major increase in taxi fares happened in July 2022, consequent to multiple hikes in fuel prices. At that time, the rate of oil was over $100 per barrel globally, and the rate of a cab ride increased by 20 fils, from Dh1.99 to Dh2.19 per km. The average price of a barrel of oil around the world this month is between $83 and $87, which is an increase of $4.53 over the price in March.

Variable pricing 

In its prior explanation, the RTA (Roads and Transport Authority) mentioned that any change in taxi fares is a dynamic change based on the fluctuating fuel rates in the local market and is measured based on fuel usage per kilometre. This was their justification for the fare hike. The "dynamic change" in price was also seen in January 2023, when Dubai's cab charges dropped dramatically by 22 fils, from Dh2.19 to Dh1.97 per kilometre.

Fare increases in Sharjah and Ajman

In the meantime, since March of this year, the Ajman Transport Authority has made a significant hike in taxi fares by 4 fils. The cost of a taxi ride was raised from Dh1.79 in February to Dh1.83 per km. Although there hasn't been a hike in taxi fares in Sharjah, recent hikes in oil prices have had an impact on intercity rates and some routes between Sharjah and Dubai. Since March 1, the rate of some routes of the Sharjah bus has increased by as much as Dh3. For instance, the bus route 309 from Rolla in Sharjah to the Mall of the Emirates in Dubai via Al Quoz has now faced a hike of Dh3, meaning the cost is now Dh20 instead of Dh17 as it did two months ago.