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Copyright 2000 Boston Herald Inc.  
The Boston Herald

March 10, 2000 Friday THIRD EDITION

SECTION: NEWS; Pg. 005

LENGTH: 341 words

HEADLINE: Taxi group wants Hub to approve fuel surcharge

BYLINE: By LAURA BROWN

BODY:
Feeling the pressure of rising gasoline prices, one Boston taxi association has asked city officials to approve an immediate 50-cent fuel surcharge on cab fares over $ 5.

Independent Taxi Operators Association President Martin J. Callinan formally requested the temporary emergency fare hike this week in a letter to the Boston Police Department's Hackney Carriage Unit, which regulates the city's cab industry.

"I think most of the passengers in Boston realize the gas prices are out of control," Callinan said. The Hackney Unit is still reviewing the request, Police Department spokeswoman Sgt. Detective Margot Hill said yesterday.

Taxi regulators in Washington, D.C., earlier this week approved a 50-cent fuel surcharge for cab drivers in the capital city.

In his letter, Callinan noted that gas prices have nearly doubled since the last taxi rate hike was approved in 1996, rising from 89 cents per gallon to current prices as high as $ 1.60 per gallon.

"Prospects for further increases in the near future are as high as $ 1.85 to $ 1.90 per gallon," Callinan said.

U.S. crude oil prices - which determine the cost of gasoline - reached a nine-year high earlier this week, then dropped slightly. But oil prices are still 22 percent higher today than they were at the beginning of the year.

The Organization of Petroleum Exporting Countries is expected to meet later this month to determine whether to boost production, but economists are still unsure whether that action will bring down soaring gasoline prices.

"In making this request, the ITOA feels that all other components that would lead to a request for a general increase in the present rate structure have remained fairly stable," Callinan said in his letter.

"We would also suggest that the fuel surcharge be on any fare that exceeds $ 5 and be optional for the driver of a licensed Boston taxi," he continued.

The current basic "drop" rate to get in a Boston taxi is $ 1.50, plus 20 cents every one-eighth of a mile, with an added $ 1.50 charge at the airport.

LOAD-DATE: March 10, 2000




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