Taxi Turns into Luxury: Rising Fuel Prices to Hit Rides

Taxi rides may become more expensive due to rising gasoline prices. This was warned by Irina Zaripova, Chairwoman of the Public Council for Taxi Development. Fuel accounts for a significant part of the expenses of taxi fleets and private drivers, so its price increase is gradually reflected in passenger fares.

However, the price will not increase by the same amount in all cities. Applications calculate the cost dynamically: they take into account demand, the number of available cars, traffic jams, seasonality, repairs, and other carrier expenses.

Rising fuel costs may further affect car availability. If it becomes less profitable for drivers to go on duty, there will be fewer available cars – and surge pricing during peak hours may increase faster.

The exact scale of the price increase cannot be predicted now. Zaripova notes that the situation will develop differently in each region, but rising costs create prerequisites for new price tags.

At the same time, the market is already trying to curb fuel costs: the "Neftmagistral" gas station chain in Moscow and Moscow Oblast reduced prices for all types of fuel after a request from the FAS regarding pricing.

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