The Executive Council yesterday approved fare increases for taxis running in urban areas and on Lantau Island with effect from the end of November.

Under the changes, fares for short trips will increase while those for long ones will be reduced. For urban taxis, the flagfall meter charge will increase by HK$2, from HK$16 to HK$18, while the incremental charge will increase from HK$1.40 to HK$1.50 for trips up to 9 km, but will decrease to HK$1 from 9 km onwards.

For Lantau Island taxis, the flag fall charges will rise from HK$12 to HK$13, increasing the incremental charge from HK$1.20 to HK$1.30 for up to 20 km and maintaining the incremental charge at HK$1.20 from 20 km onward.

In summary, 80 percent of the short-haul customers will pay HK$2 to HK$5.50 more, while fares for trips over 9 km will decrease.

The government will submit the fare-adjustment proposal to the Legislative Council on Oct 8. Pending its approval, the new fare structure will be implemented on Nov 30.

Taxi drivers who spoke with China Daily yesterday were not sure whether the new fare structure would benefit them or prevent unfair competition from the "discount gangs", who offer discounts for long-distance trips to their customers.

One of them, Lui Chuen-ming, pointed out that the price increase for short trips may dissuade potential passengers.

He added that customers may still prefer to call taxis offering discounts when they need to travel farther, because charges by discount drivers are still a bit lower.

Another driver, Sin Choi-kwong, said the soaring oil prices and discount taxis would greatly undercut the benefit from the fare hike.

Meanwhile, the responses of passengers varied.

A retired woman surnamed Fung often makes short trips to nearby MTR stations. Despite the fare increase, she said she would still take a taxi if necessary.

However, a social worker named Paul Chan found the fare increase unacceptable and unreasonable.

"They (taxi drivers) just raised the fare several months ago. While other public transport also bears soaring oil prices, how come taxis need to increase so frequently?" he said.

(HK Edition 09/24/2008 page1)