Cairo's governor has increased the tariffs of the city's white taxis by 25 percent in the wake of hikes in fuel prices earlier this month, part of a package of government economic reforms. Taxi meters will now start from EGP 4 instead of EGP 3 for a one kilometer journey, with each subsequent kilometer priced at EGP 1.75, up 35 piastres from the previous rate of EGP 1.40. The new tariff increases “have been introduced following final approval from the cabinet," read a statement by Governor Atef Abdel Hamid released on Tuesday. Cabs in the Cairo area had begun operating under the new rates on Monday. "All prices are going up like crazy and our [fares] have remained the same. That was unfair," a taxi driver in downtown Cairo told Ahram Online. A committee of experts which imposed the new increases aimed at fair prices for both drivers and passengers, Cairo governorate official Mohamed El-Sheikh said in comments carried by state news agency MENA. The last time taxi tariffs were increased was in June 2014, when the starting kilometre went up from EGP 2.5 and the subsequent kilometres from EGP 1.25. White cabs were first introduced in the capital in 2009 to replace rickety black-and-white vehicles which operated without working meters. Earlier this month, Egypt reduced subsidies of petroleum products leading to an increase in prices at the pump. Lower grade petrol increased by nearly 50 percent to EGP 2.35 a litre, while higher octane fuel rose by over a third to EGP 3.5 per litre. Natural gas used in vehicles also went up by some 45 percent to EGP1.6 per litre. The hikes in prices of petroleum products came on the same day the country took the major step of floating the Egyptian pound in hopes of addressing a dollar crunch. The pound has since slid from EGP8.8 to the dollar to approximately EGP17.5. The resulting rise in prices has caused concern among many Egyptians.
