Taxis in Budapest are getting more expensive, but there is another conflict brewing
Following the abolition of the fuel price cap in December 2022, the taxi associations (City Taxi, 6x6 Taxi, Főtaxi, NSZ, Főtaxi, OTSZ, Taxi 4) have proposed a fee raise to the Budapest General Assembly.
The abolition of the price cap is a noticeable and unaffordable cost increase for taxi drivers - reads the statement of the Mayor's Office.
The price act currently allows the General Assembly to set either a fixed tariff or a capped price, while the example of other large cities such as Vienna shows that a banded (minimum and maximum) price regulation by the authorities can ensure competition both in terms of price and the quality of service.
In view of the high inflation and the rapidly changing economic environment, the capital's administration, while protecting the interests of consumers and the market, considers it appropriate to make price regulation more flexible and to this end supports the introduction of the so-called Vienna model.
In this case, the official price could be regarded as the mid-market price and taxi companies could deviate from it both upwards and downwards by 10%. However, this change would require an amendment to the price law, which can be initiated by the Municipality of Budapest by exercising the right of referral.
Cabbies are cross
Business news portal vg.hu reported on Wednesday that taxi lobbies and operators have written to the Prime Minister and several ministers to ensure that the official fare in Budapest's taxi transport sector is maintained. They write that there have been several attempts in the recent past to replace the regulated price with a free or partially free market price.
In the letter, the taxi drivers justify their efforts by saying that the regulation has had a positive impact in a number of areas since its introduction in 2013. A survey of the taxi operators concerned has also shown that there is over 80% support for a fixed official price.
The letter was signed by 6x6 Taxi Ltd., Best Taxi, BKIK, City Taxi Cooperative, Debrecen City Taxi, Dunaújváros Főtaxi, Főtaxi, the representative of independent service providers, the National Taxi Association, Taxi 4 Ltd. and Taxisok Világa (World of Taxi Drivers) Magazine, among others.
