Taxi fares in Israel will rise tomorrow (Monday), after outgoing Minister of Transport Yisrael Katz and Minister of Finance Moshe Kahlon signed an order of the Prices Committee dating from April recommending the fare rise. Fares will rise by an average of 3.2%. The previous fare rise, amounting 4.2%, took place a year ago.
Under the new tariff, the starting fare for a taxi will be NIS 12.40 instead of NIS 12.00.
Ordering a taxi by telephone or via an app will cost NIS 5.20, up from NIS 5.00. The payment for a third passenger will be NIS 5:00, representing a rise of NIS 0.20, and the payment for a suitcase will be NIS 4.40, up NIS 0.10.
The ministers authorized the fare increase quickly despite the fact that they serve in a transitional government. When fares fall, approval takes longer. In the past, Katz delayed a cut in taxi fares for more than six months, under pressure from the taxi drivers.
The fare rise is based on a formula that takes into account the various costs of operating taxis. In the present case, fuel prices have risen 7%, average pay in Israel has risen 2.4%, and prices of tires have risen 9%. On the other hand, depreciation of taxis has fallen slightly.
Problems with meters in taxis, which measure journeys in whole seconds and meters, do not allow a rise of 3.2% in all cases. In tariff 1, the daytime tariff, the rise will in fact be 3.2%, but in tariff 2 (nighttime, Saturdays and holidays), the rise will be a little steeper, amounting to 3.69%.
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