Chicago taxi riders are now paying higher fares following the introduction of a temporary fuel surcharge designed to help drivers cope with rising petrol prices linked to the conflict in Iran. The surcharge, which took effect on Monday, applies to all licensed taxi rides in the city, according to the Department of Business Affairs and Consumer Protection.
The fee is calculated based on the pre-tax meter fare: an extra $1 for trips under $20, $2 for fares between $20.01 and $40, and $3 for journeys exceeding $40. Taxis must display official notices informing passengers of the surcharge, and charging any amount outside the authorised structure is illegal.
City officials said the temporary measure was prompted by rising fuel costs, partly driven by global market pressures from the ongoing war in Iran. The average price of petrol in Chicago is currently around $5.09 per gallon, according to AAA.
Further fare changes are scheduled for July 1, including a $2.50 rush-hour fee between 3:30pm and 7pm, a $1 overnight surcharge from 8pm to 6am, and an increase in the “vomit cleanup fee” from $50 to $100. Base taxi rates are also rising for the first time in nearly a decade, with per-distance charges increasing from 25 to 31 cents per one-ninth of a mile, alongside higher time-based charges and airport flat rates.
The adjustments aim to support the struggling taxi industry, which has faced competition from ride-hailing services like Uber and Lyft, pandemic losses, and rising insurance and maintenance costs. Without these changes, officials warned, traditional taxis could continue to lose ground.
