From the Chicago Dispatcher, April 2008
Surcharge Support
Why drivers should support a fuel surcharge
By: George Lutfallah
Remember the last time the city gave Chicago taxi drivers a gasoline surcharge when the price of gas jumped? I don't. I don't remember the city ever giving cabdrivers a fuel surcharge when gas prices increased. The reason we haven’t been getting surcharges is that the power to grant a surcharge is in the hands of the city council.
The way things are now is that if drivers want a surcharge when gas prices rise, there's nothing automatic that gives drivers relief. As we've seen over the last few years, the price of gasoline keeps rising and the city does nothing. The way it is now, you have to ask the city to give you one.
What generally happens is this: The price of gas rises, drivers get frustrated, the city does nothing, gas prices rise more, drivers get even more frustrated and the city still does nothing. So finally somebody will decide to ask the city to give us a surcharge.
It's not as simple as asking Commissioner Reyes for one. You have to ask the city council. By the time drivers actually get around to asking for a surcharge, gas prices have skyrocketed. But when the city decides to consider giving a surcharge, some slick alderman on the Transportation Committee will do some data mining to find out that there was actually a time when gas prices dropped a nickel. So no surcharge. It dies in committee and cabdrivers get no relief at all.
However this procedure might change soon. On April 7 the Transportation Committee will have a hearing to consider some ordinance changes proposed by Commissioner Reyes and apparently endorsed by Mayor Daley.
These proposed ordinances have brand-new language regarding the way a surcharge is given. Basically what it says is that when gas prices are above $2.70 for seven consecutive days, the commissioner will send out an advisory that drivers may charge an extra $.50 and when gas prices are over $3.20 for seven consecutive days, the advisory will allow drivers to charge an extra dollar. So basically a surcharge becomes semi-automatic. Drivers won't have to ask the city council for a surcharge at all.
Now, when I read the proposal, my initial reaction was that the city ought to just give us a fare increase. Prices are already over $3.20 so why are we now talking about a surcharge? If it were up to me, there would be a fare increase now with the semi-automatic surcharge language adjusted to reflect today's gas prices. However, that's not what's being deliberated on April 7 and I think it's important to get this surcharge language approved so that we don't have to beg the city council to give us an adjustment when our gasoline costs increase. And when there is a fare increase, the language regarding the surcharge will remain - only the trigger points of gasoline will change based on the prices of gasoline at the time of the next fare increase, according to Commissioner Reyes.
There are some concerns I do have regarding the proposed surcharge. As a result of the fuel surcharge, ridership will likely drop off for shorter runs, particularly as the nicer weather is approaching and walking becomes a viable option.
For longer runs, the surcharge will likely be absorbed into the tip. We know this from our experience in adding the MPEA tax on O'Hare and Midway runs. The driver often pays that tax out of his or her tip. For example, if a fare is $35 plus one dollar extra, the driver will likely get $40, whether there's an extra or not.
Also, passengers often get nervous and suspicious when drivers start pushing the "extras" button and can lead to a tense experience for both passengers and drivers. A couple coming in from O'Hare would see the driver punch the $.50 extras button six times for the fare ($1 for the MPEA tax, $1 for the extra passenger and $1 for the surcharge).
Some drivers believe the proposed surcharge is confusing and will lead to increased fines for drivers who weren't aware that a surcharge had been removed.
There are also other things in the proposed ordinances that are not in favor of Chicago taxi drivers. For example, the city wants to increase minimum fines from $25 to $75 and they want to increase maximum fines from $750 to $1,000. Also, a driver accused of a felony may have his or her license suspended. Burbank and Skokie have been changed to straight meter destinations, instead of meter and a half destinations.
I definitely think that drivers should show up at the surcharge hearing to support the surcharge and oppose the increased fines.
Regarding the surcharge, while I would prefer a fare increase, the proposal does give us some relief now. I think the real payoff will be the next time there is a fare increase. The new surcharge provision is a hedge we have never had before that will provide automatic protection in the future.
"If it were up to me, there would be a fare increase now with the semi-automatic surcharge language adjusted to reflect today's gas prices."
Well said!!!!!!!!! That is what I think as well. Why are they talking about $2.70 now??????????????? Gas is nearly $4.00!
Don't look a gift horse in the mouth. If the city wants to give us more money, I'm going to take it. Sure I'd rather have a fare increase. I'd also like to win the lottery. It doesn't look like either is going to happen soon.
