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Toronto considers increasing taxi fares to combat gas costs

A line of taxis parked on Trinity St. in the Distillery District, are photographed on Oct 2 2018. Globe and Mail

The cost of a taxi ride in Toronto could increase if councillors agree to a staff recommendation that will be considered on Friday.

A report, set to go before the city’s general government and licensing committee on April 29, recommends increasing the base cost of a Toronto taxi ride by one dollar.

The move has been recommended to respond to the skyrocketing fuel prices recorded in February and March.

“Staff acknowledge that the current state of the market … requires immediate action,” the report said.

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Staff recommended increasing the drop rate, or base fare paid for entering a taxi, from $3.25 to $4.25. It was last changed in 2015, when the city dropped it by one dollar.

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In March, Uber added a 50 cent surcharge to its rides and 35 cents to Uber Eats orders.

The Toronto taxi rate has not increased since 2010, when Toronto added harmonized sales tax into the calculation.

Traditionally an increase to the rate would include a pubic and industry consultation, staff said. Given the current cost of gas, the city will consider raising the rate without one.

“As the last full taxicab fare review occurred in 2014, staff recommend undertaking a comprehensive taxicab fare review,” the report said.

If councillors approve the report’s recommendations, and the decision is ratified at a full meeting of city council, the fare increase could come almost immediately, followed by a broader consultation in the future.

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Canada’s inflation rate hit 6.7% in March

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