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.