subject: When Am I Paying A Fuel Surcharge On My Taxi Ride? [print this page] Usually, the way that a taxi fare is calculated is fairly simple. There will be a base rate that the meter starts at, and then the meter will start running once you get in the cab. However, there are times when taxi services may bump that base charge by assessing a fuel surcharge on each and every ride. It is nice to have a good idea of when you're going to get charged that extra fee though. The good news is that there are things that you can look at which will give you an idea about whether or not you should see a fuel surcharge appear on your ride.
Taxi fuel surcharges are usually only going to be impacted by the current fuel prices in your area. When fuel prices see an unpredicted surge, or when they spike and stay up for longer than a taxi company expects, they will usually start adding on a fuel surcharge to the cost of their rides. They do this to ensure that their employees are going to keep making a reasonable wage.
A taxi driver pays for the fuel for their vehicles out of their own pocket. This means that when the fuel prices skyrocket, the drivers are suddenly making a great deal less money than they were before, because they own expenses are much higher. Most people wouldn't be expected to stay in a job where their wages get suddenly slashed due to factors beyond their control. The companies add on the fuel surcharge to make sure that their drivers are making enough money to want to continue working for their company.
Always remember that when you have to pay for a fuel surcharge, it is not the taxi company trying to simply charge you more in order to line their own pockets. Really, it is a fee to ensure that fair compensation is ensured for the employees that work for the taxi company. This is no more than anyone using a taxi company would want for themselves, so it only makes sense that they should be willing to pay a fee that is structured in this way.
If you notice the fuel prices in your area go down after they have spiked, you can expect to see that the fuel surcharge will be removed from the price of the taxi ride. Of course, if the fuel prices do not go back down, as they often do not, the fare will simply say high.
by: Brandon Caldwell
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