To keep up with rising gas prices, The Independent Taxi Operators Association of Boston has filed a written request for a $1 increase to the current surcharge of $1.75, but the cabbies are concerned that the fee hike will slow business.
The ITOA filed the request for the increase with the Boston Police Department and is expecting the result to be announced after a hearing next week.
“Cab drivers are paying 20 dollars more every day for gas than they were a year ago,” said Larry Meister, vice president of ITOA. “It hurts the drivers.”
Meister said ITOA has considered an additional increase based on length of trip but is not likely to propose it because it would take the Police Department a long time to approve the measure.
As gas prices approach $3 per gallon, Chris Tauson, manager of Top Cab Association, said cab drivers are paying twice as much to fill up their tanks than they were paying last year.
“A year ago, drivers paid 15 to 20 dollars, but right now, they are paying 35 to 40 dollars to fill up their tanks at the end of a 12-hour shift,” Tauson said. “Cost of fuel is making it difficult for the guys to make a living. It’s a sad thing. Who’s affected more than someone who drives 12 hours a day?”
If the surcharge increases, it would cover gas expenses and would help make up the work lost because of unregulated competition, Tauson said.
But cab companies are concerned about losing business if they increase the surcharge.
“We always want to keep [prices] as low as possible, but it has to remain livable for the cab drivers,” Tauson said. “They have to make enough to eat.”
Sergeant Thomas Sexton from the Hackney Division of the Boston Police Department said police are considering “two or three different proposals” addressing gas prices for cab drivers.
“Gas prices were pushing to $3 per gallon before and they are dropping now, but is there still a need to increase fares due to the increase in gas prices?” Sexton posed.
The Hackney Division, which is responsible for decisions regarding licensing authority cabs, will consider the rights of cab owners, cab drivers and consumers that ride in taxis, Sexton said.
Besides cab drivers, consumers say they are also suffering from rising oil prices.
School of Management senior Dan Taylor said he approves of a surcharge increase.
“Cab drivers work hard and [the cost of gas] is cutting directly into their profit, so I don’t care if they charge me an extra dollar,” he said.
Taylor, who said he rides cabs three times a week, said demand for cabs is not price-sensitive.
“Unfortunately there aren’t very many options in Boston, and since you can’t take the T past a certain time, the only alternative to taking a cab is to walk home,” Taylor said.
But SMG junior Betty Chan said a dollar increase would raise the surcharge 57 percent, and she called that a big jump.
“I’ll only take a cab if it’s absolutely necessary,” Chan said.