More Expensive Taxi Fares Coming Soon? Sources Say 40% Hike On The Way

Following a fare restructuring by the Land Public Transport Commission (SPAD) that is due out this week, Taxis may be charging passengers a 40 percent higher price very soon. These changes would be most impactful in the Klang Valley, Penang, and Johor Bahru, where taxis are most frequently used.

From a report by The Malay Mail Online, these new fares were meant to be tabled sometime in late 2014, however following the floods in the east coast states of Peninsula Malaysia and the fuel price fluctuations in early January 2015, it was put on hold.

The as-yet unannounced rates are expected to be:

• For budget taxis, between RM3.30 and RM4.00 for a flag-down fare in the Klang Valley, currently RM3.00.
• For Penang, the budget taxi flag-down fare is currently RM4.00, and is expected to rise to RM4.30.

The new charges for distance and time elapsed could be raised as well, to RM1.25 per kilometre, an increase over the RM0.87 per price kilometre previously. And to RM0.25 for 30 seconds, increased from approximately RM0.15 for 30 seconds previously.

Altogether, these new prices will mean a significant increase in cab fares within city passengers who have to contend with being stuck in heavy traffic on a daily basis as the meter would charge RM30 per hour according to the new fares.

The Malay Mail’s source said this move is to encourage cabbies to operate within the city instead of meandering around suburban areas or outright ignoring certain locations due to heavy traffic as well as to bring fares in line with the high operation/maintenance costs and rise in cost of living that taxi drivers have had to deal with. 

“Cabbies have had to curb high costs such as escalating maintenance cost between 20 per cent to 25 per cent, fuel expenses by 17 per cent, battery by 30 per cent to 35 per cent and tyres by 25 per cent to 30 per cent,” said The Malay Mail’s source.

Following the implementation of this new taxi fare rates, SPAD also plans to launch its Centralised Taxi Service System (CTSS) to all metered taxis, allowing them to record the location and fare charge data much more accurately.