Taxi fares fall in Luxembourg

Luxembourg's taxi services have seen a fall in tariffs since April this year, according to statistics office, Statec.

"From April 2017, after the transitional phase of the new law, Statec found, in the calculation of the consumer price index, a slight reduction in the rates for taxi services in Luxembourg," a report by the Observatory of price formation revealed.

The report shows a three per cent decrease. But since 2004, prices have changed in different ways according to various scenarios.

There has been an increase of 75 per cent in weekday journeys of 4.3km in the capital whereas an 8.5km trip after 10pm for six people has only gone up by 6.4 per cent.

According to the latest UBS study based on 2015 Luxembourg was the third most expensive city for taxi fares with an average price of €20.67 per five kilometres in urban areas during the day. The top two most expensive cities were Oslo, at €29.69, and Zurich, with €25.50.

The European average cost for the same type of journey was €10.74. In Frankfurt, Berlin and Munich the journey cost €13.50, it was €11.13 in Brussels and €11.77 in Paris and Lyon.

Salaries represent 60%of charges

According to the Observatory, the consumer cost of a taxi ride has changed in a similar way to the costs carried by taxi companies and only over the past four years have taxi fares increased quicker for the consumer.

"This could be explained by two major components: wage developments in Luxembourg have slowed down in recent years and fuel prices have fallen sharply from 2013," the report states.

According to statements by the president of the federation of employers of taxi and ambulances, salaries represents 60 per cent of the costs of a taxi company in Luxembourg.

The Observatory also noted that following the new law there has been greater variations of fares between service providers, depending on traffic conditions, flat fees and booking via mobile apps.

(Wort staff)