Photo by philliefan99
Taxicab riders, rejoice! Beginning Wednesday, cab rides in D.C. will cost $1 less as the D.C. Taxicab Commission’s fuel surcharge expires. The agency announced Friday that with a recent drop in the price of gasoline, taxis will no longer tack on the extra buck they have for the past 16 months to cover fuel prices.
The fee went into effect in March 2011, when the average price of a gallon of regular unleaded gasoline in D.C. hit $3.45. The surcharge was extended three times as prices continued to rise, eventually peaking at nearly $4.20 in April.
But over the past several weeks, gas prices nationwide have declined. The most recent survey of local prices conducted by WTOP found the cost of a gallon of regular unleaded gasoline had dropped to $3.53, down 9 cents from the previous week and 32 cents from this time last year.
The slide in gas prices is expected to continue through the summer, even as global oil production remains steady. Still, it shouldn’t be taken as any silver lining in an economic rough patch. The Associated Press reported earlier this month that while lower gas prices might bring a smile to consumers’ faces, they aren’t, in fact, the brightest of omens:
If Americans spend less filing their tanks, they’ll have more money for discretionary purchases. The downside? Lower oil and gas prices are symptoms of weakening economic conditions in the U.S. and around the globe.
On [June 1], oil plunged nearly 4 percent as a bleak report on U.S. job growth heightened worries about a slowing global economy and waning oil demand. Sobering economic news from China and Europe also contributed to the drop.
As for the D.C. Taxicab Commission, Chairman Ron Linton said in the press release announcing the end of the $1 surcharge that even though gas prices are lowering and expected to get even lower, the added fee could come back.
“The commission will continue to monitor the cost of gasoline throughout the summer and fall and should conditions change it will consider appropriate action,” Linton said.
