The cost of one-mile taxi rides will rise in Gwynedd.

At Gwynedd Council’s general licensing committee on 21 September, a proposal to increase the maximum fare for a one-mile journey from £3.60 to £4 was approved.

It also agreed to increase the operational hours of the late-night tariff from 10pm until 7am instead of from midnight.

The cost rate of late-night tariff journeys will reduce from 60 per cent higher than the basic rate, back to 50 per cent higher than the basic rate.

The changes are set to come in from 1 October 1. Following a public consultation no objections or proposals were received.

The changes followed requests from taxi company owners to raise maximum fares charged by hackney carriage taxis. This has not changed since 2022.

The proposals were developed “in response to increased operating costs faced by the taxi industry, while also seeking to strike a fair balance between affordability for passengers and the need for operators to run sustainable businesses”.

A council report noted that small and medium-sized businesses which employ workers had “faced an increase in costs such as national insurance and in the minimum salary rate over recent years”.

It added: “This has undermined the ability of small businesses such as taxi companies to make a profit.

“The country’s economic situation over the last few months has seen a significant increase in fuel costs, particularly diesel due to the war in Iran.”

It also noted that projections stated fuel costs would not fall in the near future.

Costs of appropriate insurance cover for licensed vehicles were also “high” and there were “annual costs attached to licensing a taxi vehicle and costs involved every three years with drivers’ licences”.

The discussion formed part of the council’s statutory responsibility to regulate maximum taxi fares, helping to protect passengers while supporting the continued provision of taxi services.