Taxi fares in Budapest may increase up to twenty percent
If the agreement is reached, the taxi fare per kilometer in Budapest could jump from 460 to 480 HUF (1.14-1.19 EUR).
An agreement between the taxi associations and Budapest could be reached in January at the earliest, said mayor Gergely Karácsony. What is certain though is that in the first days of 2023, taxis will still charge the current rates – 400 HUF (0,99 EUR) per kilometre. Karácsony would not oppose the removal of price cap tariffs. However, he would not entrust taxi companies with the decision of setting their own rates, as he is aware of the possible risks, which may include the monopolisation of the taxi market:
“If prices can be set freely, companies with a stronger market orientation can squeeze out the weaker ones with lower prices, and in a cleared market they can impose their price increases without any restrictions”
Taxi companies agree
Zoltán Metál, president of the National Taxi Association, told 24.hu that all taxi companies, without exception, agreed to maintain the price cap tariff. The organisations are united on this issue, he said. The main reason is that they see this as a way of ensuring a long-term return. In Budapest, since 2013, access to the taxi market has been subject to certain conditions – technical and formal requirements. The recovery of these costs is seen as more certain under the price cap tariff.
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According to Zoltán Metál, the current system is also more convenient for passengers. People do not have to deal with different offers for the same journey, depending on the time of day. The number of passengers has increased since 2013. Metál sees this as a sign of confidence, which they do not want to jeopardise in any way.
Too early to give a specific figure
The official fares will, therefore, certainly stay, but it remains to be seen how much they will increase. The president of the taxi association said it was too early to give a specific figure, but their demand for an increase was below 20 percent. In May this year, the tariffs were raised after a long period of time. This was due to an agreement between the taxi drivers and the municipality of Budapest. Back then, the drivers agreed to overlook further increases in their costs if they did not raise their fares by more than 20 percent in 2022, recalled Zoltán Metál.
But the removal of the fuel price cap in December has increased the cost of fuel by 35 percent. This is why they reckoned it was time to turn to the government. Still, they are aware that they may lose passengers due to the rise.
According to 24.hu, the current 400 forints per kilometre charge could rise to somewhere between 460 and 480 HUF next year. This is a more moderate increase than the previous 33 percent rise in May. Back then, the prices increased from 300 to 400 HUF (0.74 -0.99 EUR), with the base fare jumping from 700 to 1,000 HUF (1.74 to 2.48 EUR) and the minute fare from 75 to 100 HUF (0.19 to 0.25 EUR).
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Source: 24.hu