Taxis and ride-hailing services are going to cost more starting this week in the nation’s capital and in cities across the country as companies turn to surcharges to offset the rising cost of fuel.
District regulators on Wednesday announced a temporary $1 fee on taxi fares, joining ride-hailing giants Uber and Lyft in adding a charge to help drivers facing higher prices at the gas pump. The national average of a regular gallon of gasoline hit $4.30 on Wednesday.
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The national average cost of fuel was down a penny from Tuesday, but up about 5 cents from last week and about 80 cents higher than a month ago, according to AAA. Experts say fuel prices could continue to soar after President Biden’s decision last week to ban the import of Russian oil in response to that nation’s assault on Ukraine.
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“The surcharge will help offset the effects of the U.S. ban on Russian oil and high prices at the gas pump,” the District’s Department of For-Hire Vehicles said in a statement. The agency said the surcharge will remain in effect for 120 days.
Spiking gas prices sting drivers nationwide, tapping pocketbooks and patience
In the nation’s capital, AAA reported Wednesday that gas costs an average of $4.47 a gallon, up from $4.42 a week ago. A year ago, D.C. motorists were paying an average of $3.05 for a gallon of regular unleaded gas, according to AAA.
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Across the Washington metro area, gas prices remain slightly lower than in the city but also have increased in recent weeks: A gallon of regular unleaded is $4.29, up from $3.52 a month ago and $2.87 a year ago.
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Uber riders across the nation on Wednesday began paying a surcharge of 45 or 55 cents on rides, depending on their location. The company is also imposing a surcharge of 35 or 45 cents on Uber Eats orders to help the food couriers.
The surcharges are based on average trip distances and the increase in gas prices in each state, the company said. It said the fee will remain in place for 60 days and will go to “help reduce the burden” on drivers who are feeling the sting of record gas prices.
Lyft on Wednesday said it will add a 55-cent surcharge on each ride starting next week, all of which will go to drivers and which will be in effect for 60 days.
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“We’ll continue monitoring gas prices, listening to how drivers are being impacted, and finding ways to support them as things evolve,” the company said in a blog post.
Travel experts say fuel surcharges could become more widespread in cities across the nation as taxi operators press regulators for relief. The high cost of gas is also likely to lead to higher airfares, while freight transportation companies are charging more to transport goods and food products.
In the District, taxi drivers welcomed the $1 surcharge, which some industry leaders had been asking for since last week.
Roy Spooner, general manager of D.C. Yellow Cab, said the additional dollar can help drivers as gas prices are “getting worse every day” and demand for fares hasn’t returned to pre-pandemic levels.
“When you think about how regular gas has pretty much doubled, every little bit helps,” Spooner said. “That extra dollar of gas will probably get you three or four miles and the average trip in the city is five miles, so you got some help with it.”