Transport chiefs have ruled out any immediate increase in taxi and public transport fares – a decision by Dubai's Roads and Transport Authority (RTA) seen as a major blow to operating firms.
Escalating operating costs and demands from drivers for better pay had led to speculation that fares would be increased. Rising diesel prices have increased costs for bus operators. But a RTA official accepted operating costs for its public transport business had gone up but there was no immediate plan to increase fares.
"We announced last month that the RTA would execute the flat rate fare for public buses as of July 1, 2008," RTA Director of Public Transport Abdulla Yousuf Ali told Emirates Business. "As for taxi fares, there is nothing in the pipeline for the time being."
Taxi company sources said they had held several meetings with RTA officials to discuss revising fares.
However the RTA took the view that as most taxis operated on petrol – the price of which has not increased - there was no immediate need to revise fares.
"We are committed to providing a good service to the public on several fronts including the ensuring affordable fares," added Ali. "So any revision of the current fares is not on the table."