Lee County Port Authority RSW's Taxicab Fuel Surcharge: A Method to Mitigate the Rising Gasoline...

Lee County Port Authority

RSW's Taxicab Fuel Surcharge: A Method to Mitigate the Rising Gasoline Fuel Prices Now and in the Future

April 21, 2023


Why is a Fuel Surcharge Even Necessary?

1. Current “modus-operandi”

2. Erosion of taxi driver’s “profits”

3. Keeping the playing field level


Taxicab Fuel Surcharge Elements

1. Cost of Fuel

2. Zone Rate

3. Zone Distance

4. Fleet miles per gallon

5. Review of previous month’s history



1. Cost of Fuel



1. Cost of Fuel

2. Zone Rate



1. Cost of Fuel

2. Zone Rate

3. Zone Distance


1. Cost of Fuel

2. Zone Rate

3. Zone Distance


5. Review of previous month’s history



Why didn’t we apply a simple 10 or 15 percent charge instead of going through this whole mathematical exercise?

In a word – “fairness”

Taxicab Fuel Surcharge


How does this fit into the Conference Theme? (Looking ahead 5 years)

1. Elasticity

2. Proactive vs. Reactive

3. Fairness to the taxicab drivers


How The Fuel Surcharge Works


1. First business day of the month …





2. Review of previous month’s fuel prices…





3. Evaluation of range…





4. Computation of new fuel surcharge…



FS = (MVIR – 2.33) / FAMPG * AVZRT where

FS = is the Fuel Surcharge to be determined;

MVIR = is the mid-point value of the price of fuel based on thirty (30) cent increments starting at $3.00;

2.33 = the baseline price of fuel at the time of initiation of the demand taxicab concessionaire’s contract;

FAMPG = the miles per gallon as a constant based on the demand taxicab’s fleet composition. As of January 2008, this constant was 15 miles per gallon;

AVZRT = the average round trip miles for each zone.

Fuel Surcharge Formula






5. Why compute each month…?








6. Various action items…









6. Various action items…

7. Cycle repeats.


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Lee County Port Authority RSW's Taxicab Fuel Surcharge: A Method to Mitigate the Rising Gasoline...

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