Index Component1 | Cost Increase | Weight2 | Contribution to Total3 | Data availability4 |
Last Year | Latest | |||
Vehicle Cost | 8.6% | 9.1% | 0.8% | N/A |
Parts5 | 1.8% | 4.2% | 0.1% | November 2015 |
Tyres5 | 1.8% | 0.6% | 0.0% | November 2015 |
Garage & servicing – premises5 | 1.8% | 0.6% | 0.0% | November 2015 |
Garage & Servicing – labour5 | 1.8% | 2.0% | 0.0% | November 2015 |
Fuel6 | -12.8% | 10.6% | -1.4% | Sep – Nov 2015 |
Insurance7 | 11.3% | 4.5% | 0.5% | November 2015 |
Miscellaneous | 0.8% | 1.0% | 0.0% | N/A |
The Knowledge8 | 2.4% | 5.4% | 0.1% | Aug – Oct 2015 |
Social Costs8 | 2.4% | 2.8% | 0.1% | Aug – Oct 2015 |
Total Operating Costs | 0.6% | 40.7% | 0.3% |
|
Average national earnings8 | 2.4% | 59.3% | 1.4% | Aug – Oct 2015 |
Grand Total | 3.0% | 100% | 1.7% |
|
Notes
1. The index components are as normally used in the cost formula. Further details are available on request.
2. ‘Weight’ is the proportion that the component contributes to the total cost per mile.
3. ‘Contribution to total’ indicates the importance of each component’s cost change in determining the overall cost change. It is calculated for each component as the product of its percentage cost increase and its weight. The Grand Total is the sum of the individual components’ contributions.
4. The ‘latest’ column under ‘Data availability’ indicates the dates to which data in the ‘cost increase’ column relates.
5. As agreed in 2011, costs for Parts, Tyres and Garaging will be uplifted by the yearly change in the Office for National Statistics RPI figure for “motoring expenditure: maintenance of motor vehicles” (DOCT) published on 15 December 2015.
6. The change in fuel costs relates to the change from the average of the AA diesel price for the 3 months to December 2014 to the 3 months to November 2015. This figure will be revised as further monthly data becomes available.
7. As agreed in 2011, costs for insurance will be uplifted by the yearly change in the Office for National Statistics RPI figure for “motoring expenditure: vehicle tax and insurance” (DOCV) published on 15 December 2015.
8. Provisional Knowledge, Social Costs and Average National Earnings changes are based on the year on year ONS average weekly earnings growth for the three months to October 2015.
TfL Pricing & Forecasting
23 December 2015
Appendix 2
Details of taxi cost calculations
This table shows the cost per mile of each cost component in 2014 and 2015.
Component of index | Cost p per mile in 2014 | Proportion of costs in 2015 | Cost p per mile in 2015 | Increase in costs 2015 | Contribution to total increase |
Vehicle Cost | 21.25 | 9.7% | 23.08 | 8.6% | 0.8% |
Parts | 9.89 | 4.2% | 10.07 | 1.8% | 0.1% |
Tyres | 1.46 | 0.6% | 1.49 | 1.8% | 0.0% |
Garage & Servicing - Premises | 1.34 | 0.6% | 1.36 | 1.8% | 0.0% |
Garage & Servicing - Labour | 4.74 | 2.0% | 4.83 | 1.8% | 0.0% |
Fuel | 24.92 | 9.1% | 21.73 | -12.8% | -1.4% |
Insurance | 10.53 | 4.9% | 11.72 | 11.3% | 0.5% |
Miscellaneous | 2.35 | 1.0% | 2.37 | 0.8% | 0.0% |
The Knowledge | 12.64 | 5.4% | 12.95 | 2.4% | 0.1% |
Social Costs | 6.48 | 2.8% | 6.64 | 2.4% | 0.1% |
Total operating costs | 95.60 | 40.3% | 96.24 | 0.7% | 0.3% |
Average national earnings | 139.16 | 59.7% | 142.51 | 2.4% | 1.4% |
Grand Total | 234.76 | 100.0% | 238.74 | 3.1% | 1.7% |
Note that increases are rounded to one decimal place in the table, but greater precision has been used in the calculations.
Vehicle Cost
Four strategies have been considered for purchasing a cab:
1. Purchase new and run to scrap,
2. Purchase new and sell at 4 years,
3. Purchase at 4 years and sell at 8,
4. Purchase at 8 years and run to scrap.
Table 2 below gives the costs for the 4 strategies (as supplied by LTC in 2015). They relate to TX4 models for all strategies.
Table 3 shows the corresponding costs provided for 2014.
In October 2015 Vito taxis made up 11.6% of the fleet. Purchase costs for these taxis and the TX models have been weighted using this figure to provide an overall average purchase cost.
The average cost over 12 years in 2014 was £62,652 or 23.73 pence per mile. The average cost for the same strategies in 2015 was £68,257 or 25.85 pence per mile, giving an increase of 8.7 per cent.
Pence per mile rates have been calculated assuming an annual vehicle mileage of 22,000 miles.
Parts, Tyres, Garaging & Servicing
In 2011 a study was conducted comparing the changes in costs associated with parts, tyres, garaging and servicing incorporated into the cost index over recent years with the yearly changes in the Office for National Statistics RPI figure for “motoring expenditure: maintenance of motor vehicles” (DOCT). The study concluded that the two series were comparable and it was agreed to use this ONS RPI figure to represent these cost index items in future.
In November 2015 the DOCT RPI series showed an annual increase of 1.8 per cent. This gives an increase in the cost per mile of these components from 17.43p in 2014 to 17.75p in 2015.
Fuel
The Derv price index from Arval, which has been used to calculate the change in fuel price, was discontinued in 2013. In deciding on an alternative source of fuel price data analysis of London diesel prices from the AA (available at www.theaa.com/motoring-advice/motoring-costs.html) shows close correlation with the Arval Derv price index. Based on AA data last used to calculate the index, the average fuel price over the three months to December 2014, was compared with the AA average price over the latest three months to November 2015. This gives a value of 110.6p per litre compared to 126.9p, giving a decrease of 12.8 per cent.
Insurance
A similar comparison to that made for parts, tyres and garaging costs was made of previous years’ cost index insurance figures versus the ONS RPI series figure for “motoring expenditure: vehicle tax and insurance” (DOCV), and again it was decided to use the RPI figure in future cost index revisions.
In November 2015 the DOCV RPI series showed an increase of 4.7 per cent compared to the benchmark October price level used to calculate the last index. This gives an increase in the cost per mile of these components from 10.53p in 2014 to 11.72p in 2015.
Miscellaneous
This comprises the cost of hiring a meter, smoke test, vehicle licence and driver licence. The average cost in 2014 was £481 or 2.35 pence per mile. The average cost for the same strategies in 2015 was £485 or 2.37 pence per mile, giving an increase of 0.9 per cent.
Earnings Related
The latest average weekly earnings data (headline rate ONS series KAC3) show a 2.4% increase for the three months to November 2015, compared to the three months to November 2014 used for the 2015 index. This gives a cost per mile figure for the updated index of 142.5p, representing 59.7 per cent of the total index cost.
The “knowledge” and “social” costs have also been uplifted each year in line with national earnings. In 2015 these increased to 12.95p and 6.64p respectively, together representing a further 8.1 per cent of the total index cost.
TfL Pricing & Forecasting
23 December 2015
Tariff Changes – 1.6 per cent average increase[1]
Tariff Changes – 1.6 per cent average increase
Average Fares
| Current average | New average | Increase (£) | Increase (%) |
Tariff 1 | £11.51 | £11.69 | £0.18 | 1.6% |
Tariff 2 | £13.34 | £13.56 | £0.21 | 1.6% |
Tariff 3 | £15.67 | £15.92 | £0.25 | 1.6% |
All Week | £12.72 | £12.92 | £0.20 | 1.6% |
Tariff Rates – 1.6 per cent average increase
|
| Tariff 1 | Tariff 2 | Tariff 3 | |||
|
| Current | New | Current | New | Current | New |
minimum fare[2] | £2.40 | £2.60 | £2.40 | £2.60 | £2.40 | £2.60 | |
minimum units | 2 | 2 | 2 | 2 | 2 | 2 | |
metres/unit < 6 miles | 126.2 | 123.9 | 102.5 | 100.6 | 82.7 | 81.2 | |
secs/unit < 6 miles | 27.1 | 26.6 | 22.0 | 21.6 | 17.8 | 17.5 | |
metres/unit > 6 miles | 88.5 | 86.9 | 88.5 | 86.9 | 88.5 | 86.9 | |
secs/unit > 6 miles | 19.0 | 18.7 | 19.0 | 18.7 | 19.0 | 18.7 | |
Units at lower rate | 76 | 77 | 94 | 95 | 116 | 118 | |
Metres at lower rate | 9591.2 | 9540.3 | 9635.0 | 9557.0 | 9593.2 | 9581.6 | |
changeover fare | £17.40 | £17.80 | £21.00 | £21.40 | £25.40 | £26.00 | |
Example Fares – 1.6 per cent average increase
All example fares assume entire journey charged on distance rates
Tariff times
· Tariff 1: Monday to Friday between 06:00 and 20:00
· Tariff 2: Monday to Friday between 20:00 and 22:00, Saturday and
· Sunday between 06:00 and 22:00
· Tariff 3: Every night between 22:00 and 06:00, Public holidays
7 comments:
Nothing about the time aspect which will slaughter rate 1 drivers .
This is a pay cut.
I will put the extra 20p towards my new 50k electric cab.
Do me a lemon
Couldn't they of made it a bit more complicated?
liers figure and figures lie
as is so often the case, much is BURIED in the detail
however, as tfl seem to take this pile of gobbley-gook so seriously, here’s what I’ve extrapolated from it
for a start, it’s all based on AVERAGES, which as my old school teacher was oft to say:
There is no such thing as an average ie if you have one leg in a bowl of boiling water & the other in a bucket of ice – What is your average temperature?
EVERYTHING, seems to be based on a mileage of 22,000 miles per year
tfl's figure!
they say this, after paragraph 3, which follows their TABLE 3
I’ve no idea where this figure is derived from, as their TABLES say, it's
PAID FOR/METER ENGAGED MILES?
it totally ignores the cabs, driving around EMPTY, or sitting on ranks for hours on end, who after an age, end-up, getting a tuppenny-happeny fare!
still, plodding-on:
Appendix 2
Details of Taxi Cost Calculations
this table shows tfl's costings, per mile, of each component in 2015
which for: TOTAL OPERATING COSTS, it gives a figure of: 96.24p per mile
thus, for 22,000 miles, this is: £21,172.80
allowing for a 48 week year, that’s: £441.10 per week
remember, these are tfl’s figures!
they then go on to say, on the same Appendix, that we have earnings ie PROFITS (before TAX), on this of:
£1.43 per mile x their 22,000 miles = £31,460.00
NB these are tfl’s figures
telling us, what our takings & profits are!
so that’s, RUNNING COSTS of £21,172.80 + GROSS PROFITS £31,460
which makes our TOTAL TAKINGS: £52,632.80 PA
or, for a 48 week year: £1,096.52 per week
or, per day,for a 5 day week: £219.30 per day
YES, tfl are saying that the average LICENCED BY THEM, LONDON TAXI DRIVER, IS TAKING
£219.30 PER DAY – EVERY DAY!
tfl’s figures
and the terrible thing is, tfl probably believe their own crap
regards, Alan Wicker
Fgures supplied by LTC is this the London Taxi Company ,surprise surprise their figures say buying a new Taxi works out cheapest
£219.30 per day do me a lemon. Being a yb that's roughly what I clear a week and I challenge anyone from Tfl or the inland revenue for that matter to come down to Tottenham Hale and sit there for five day's will see im not far of them figures. Disgraceful wages for a licensed cab driver. I no im not a green badge but I still have to pay the hp on my vito support a family try and pop out for a pint once in a blue moon all on fck all earnings. suburbs are long gone and central is next.
Hu
Can anyone let me have a link to TfL where it says 22,000 miles:
EVERYTHING, seems to be based on a mileage of 22,000 miles per year
tfl's figure!
they say this, after paragraph 3, which follows their TABLE 3
I’ve no idea where this figure is derived from, as their TABLES say, it's
PAID FOR/METER ENGAGED MILES?
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