It's all over the news and media, taxi fares going up, which is always followed by drop in taxi demand of some sort. Yesterday was a decrease in taxi queues, and many thinking twice before hiring a cab. Today it was a decrease in demand for taxis. I guess this all fits the model of supply and demand, and the reasons used to justify the hike are all valid, such as increase in petrol, and increasing maintenance costs for cabs. Also, given the increase in inflation I guess it is all natural for prices to increase everywhere. 

Personally I've grown to dislike cabs because of the drivers attitude. I've been taking a lot of cabs as part of my job, and often I see empty cabs just drive past totally ignoring me. Getting a cab along the street is so much harder now, and this seems strange since more taxi service providers have entered the market. Sometimes I wonder if a government controlled monopoly taxi market will be better than the semi monopolistic taxi market we have. 

I was also thinking. Inflation, and oil prices are not constants, and there will come a time when they will decrease. But will the prices which have used these events to justify their increase decrease accordingly? I find it hard to believe that taxi companies will reduce their fares, if ever.