Taxi passengers on the Isle of Wight could soon face an additional charge of up to £5 per journey under new fuel surcharge proposals being considered by the Isle of Wight Council.
The plans, due to be discussed by the Council’s Licensing Committee next Friday (16th October), would allow Hackney Carriage drivers to add an extra charge to the metered fare when fuel prices reach certain levels.
The additional cost would depend on both the price of fuel and the total fare, with the highest proposed surcharge of £5 applying to journeys costing £50 or more when average fuel prices reach £2.50 per litre.
The changes could come into effect from 1st December, subject to approval and public consultation.
The Council has received a request from the taxi trade to introduce a fuel surcharge following fluctuations in fuel prices since the existing fare structure was approved in 2022.
According to a report prepared for councillors, some taxi operators are experiencing financial hardship as a result of increased fuel costs.
Rather than increasing existing mileage rates, the Council is proposing a variable surcharge which could be applied during periods of higher fuel prices.
For example, at an average fuel price of £2 per litre, a passenger paying between £5.01 and £10 would face an additional 40p charge, whilst someone making a journey costing between £20.01 and £25 would pay an extra 90p.
For journeys costing £50 or more, the surcharge would be £2.50 at the same fuel price, rising to £5 if fuel reached £2.50 per litre.
Fully electric taxis would be exempt from the additional charge.
Under the plans, the Council’s Licensing Team would determine when a surcharge could be applied and notify taxi proprietors accordingly.
Drivers would be required to record each occasion on which the surcharge is added, whilst council officers would undertake random compliance checks.
Officers have warned that failing to address rising operating costs could place further financial pressure on taxi drivers and potentially reduce the availability of taxis, particularly during less profitable periods or in certain locations.
However, the report also acknowledges that higher fares could have a financial impact on passengers, with the Council seeking to balance affordability against maintaining a viable taxi service.
Councillors are being asked to approve the proposals for a statutory public consultation lasting at least 14 days, with any objections considered before the revised fares could be introduced.
