Gasoline price hike: will taxi fares go up in Ukraine?
9 March 18:49
The rapid rise in gasoline prices in Ukraine is gradually increasing the cost of transportation, particularly in the taxi sector.
As a result, passengers may face higher fares if fuel prices continue to rise.
UNIAN contacted representatives of popular taxi services to find out if they plan to change their prices, according to "Komersant Ukrainian".
Bolt’s position: fares will not change for now
Bolt has stated that the sharp rise in gasoline prices has not yet affected its fares.
According to the company’s general manager in Ukraine, Serhiy Pavlik, the system for determining the cost of trips works on the principle of dynamic pricing.
This means that the price depends primarily on:
- the ratio of supply and demand
- the number of drivers at a given moment
- the number of passengers ordering rides at the same time
At the same time, the company acknowledges that the prolonged rise in fuel prices will inevitably affect the economics of travel.
Uklon is also monitoring the market
Uklon does not predict a specific increase in fares.
According to the company’s Chief Ride-hailing Officer, Olena Orlova, the service analyzes:
- expert forecasts
- comments from the authorities
- appeals from partner drivers
At this point, it is premature to talk about changes in fares for users, the company notes.
How dynamic pricing works
Taxi services use automated mathematical models that determine the cost of a trip in real time.
Various factors can influence the price:
- time of day
- weather conditions
- public transportation situation
- road works
- peak loads (for example, after a subway stop)
It is the balance between supply and demand that determines the final cost of the trip.
Reason for the rise in fuel prices
The rise in gasoline prices is linked to tensions in the Persian Gulf.
After Iran announced the closure of the Strait of Hormuz, global oil and fuel prices began to rise.
The Strait of Hormuz is one of the most important oil transportation routes in the world, so any restrictions on shipping quickly affect the global market.
Expert forecasts
Dmytro Leushkin, founder of the Prime group of companies and fuel expert, predicts further price increases at Ukrainian gas stations.
According to him, gasoline and diesel may become more expensive over the next week if shipping through the Strait of Hormuz is not fully restored.
The expert also does not rule out a possible small fuel shortage at the end of March.
Additional risks for the market
Supply problems could further complicate the situation.
One of the key fuel suppliers to Ukraine, the Polish company Orlen, together with its German partners, has announced a reduction in supply volumes.
If fuel prices continue to rise, this could gradually affect not only taxis, but also the entire transport and logistics sector.
