Diesel prices are rising: Will there now be a surcharge for every taxi ride?

The rising diesel prices as a result of the current geopolitical developments in the Middle East are, according to the Bavarian Taxi and Rental-Car Companies Association, worsening the economic situation of the Bavarian taxi and rental-car trade. In a letter to the district offices as well as to the administrations of the district-free cities, the association recommends a temporary surcharge of €1.50 per taxi ride.

According to the association, diesel costs are among the central variable expenses in taxi operations. Because of high daily utilization and above-average annual mileage, even small price increases per liter have a noticeable impact on operating costs. In recent weeks, the diesel price has risen noticeably.

Structural burdens due to tariff binding

According to the association, the Bavarian taxi trade is predominantly characterized by small and medium-sized enterprises. Many companies had only a few vehicles and limited financial reserves. At the same time, significant cost increases had already been recorded in recent years, including in personnel due to the Minimum Wage Act, as well as in insurance, vehicle and capital procurement, maintenance and spare parts.

In addition, there is tariff regulation of taxi traffic. The fares are set by the competent licensing authorities. Short-term cost developments could thus only be offset to a limited extent and not in a timely manner through prices. Unlike other industries, taxi and hire-car companies have only a limited room for their own price setting.

Proposal for a time-limited surcharge

As a bridging solution, the association proposes introducing a temporary tariff surcharge by means of an emergency ordinance. This would be levied in addition to the respective applicable transportation charges and would amount to €1.50 per ride.

The measure should be limited no later than 30 September 2026. Alternatively, it should end early if the weekly statistic published on de.statista.com, "Average price for diesel fuel in Germany," shows three consecutive values below €1.48 net or €1.76 gross. In this case, the surcharge shall expire on the day following the publication of the corresponding determination by the authority in the official gazette.

The surcharge must be communicated to the passenger before the ride. In addition, the corresponding regulation should be carried in paper form in the taxi and presented upon request.