Chicago taxi riders will now encounter higher fares due to a new fuel surcharge designed to help drivers offset rising gas prices amid the ongoing conflict in Iran. The temporary Taxi Fuel Surcharge Fee took effect on Monday in Chicago and applies to all licensed taxi rides, as announced by the Department of Business Affairs and Consumer Protection in a news release. The surcharge is based on the pre-tax meter fare and increases according to the trip cost.
Fuel Surcharge Details
For shorter rides with a meter fare under $20, passengers will pay an additional $1. Trips ranging from $20.01 to $40 will include a $2 surcharge, while longer or more expensive rides above $40 will carry a $3 fee. The new charge must be clearly posted inside all taxis, with drivers instructed to display official notices so passengers are aware of the added cost before or during their ride. Chicago regulators also warned that charging any fuel surcharge outside of the authorized structure is illegal.
The surcharge is expected to be temporary and was introduced because of rising fuel costs, driven in part by global market pressures, including the ongoing conflict in Iran that has pushed oil prices higher, according to city officials. In Chicago, gas is currently averaging about $5.09 per gallon, according to AAA.
Additional Fare Changes
The fuel surcharge is just one part of a round of fare changes coming to Chicago taxis. Starting July 1, riders will also see a $2.50 rush-hour fee between 3:30 p.m. and 7 p.m., a $1 overnight surcharge from 8 p.m. to 6 a.m., and a jump in the “vomit cleanup fee” from $50 to $100. The city is raising base taxi rates for the first time in nearly 10 years. The per-distance charge is going up from 25 cents to 31 cents per one-ninth of a mile, and time-based charges are also increasing. Airport flat rates are also set to rise.
Industry Struggles
The changes are meant to shore up the struggling taxi industry, which has been squeezed for years by competition from Uber and Lyft, pandemic losses, and rising insurance and maintenance costs, officials said. Without adjustments, they warn, traditional taxis could continue to lose ground.
