According to the cost ov living observatory, which published its latest report on Monday, taxi tariffs for customers rose 11.3% from March 2017 to June 2019, while the estimated or simulated costs borne by a taxi company increased by just 6.1%.

“The uptick in price of fuel and increased personnel costs during this period have certainly had an impact on the costs companies face but their evolution remains below that of the increase in registered taxi fares,” the report found.

Luxembourg introduced a reform of the taxi sector in September 2016, with a transition period until February 2017. Among other things, the reform divided taxi operation zones into six areas and sought to create greater transparency in relation to taxi fares.

An early review by the observatory of the law conducted in July 2017 found there was a “slight drop in tariffs for taxi services in Luxembourg” since the law entered into force. However, this latest report found that the fall was short-lived. From May to June 2019, taxi rates rose 4.5%, while the hike from July 2017 (when the last report was published) to June 2019 was calculated at 15.9%.

The report author wrote that adjustments to the new law were expected to be tabled before the end of the year. These will examine the possibility of creating one national zone, as opposed to six, increasing low-emission taxis, further digitising the sector, reinforcing passenger rights and strengthening stop and check powers.