# Chicago cabs can add up to $3 a ride for gas again. The Council wrote the rule, and rewrote taxi fares this spring

*With gas at $5 a gallon, the City switched on a fuel surcharge of $1 to $3. The trigger was set by a 2022 ordinance, and the Council raised meter rates for the first time since 2016 in April.*

By Chicago Politics · Updated Oct 24, 2026

Chicago taxi drivers can once again add a fuel surcharge to every fare, after the Department of Business Affairs and Consumer Protection authorized it this week, the [Chicago Sun-Times reported](https://chicago.suntimes.com/transportation/2026/10/22/taxi-fuel-surcharge-gas-prices-high). The charge is $1 on fares of $20 or less, $2 on fares from $20.01 to $40, and $3 on fares above $40. Drivers must post a notice in the cab.

Why it matters: riders will see a higher total on the meter for as long as gas stays high, and drivers, who pay for their own fuel, get some relief. A surcharge was also in effect from June 1 to June 23 this year, according to the Sun-Times.

## How the surcharge works

The surcharge is not a decision BACP makes from scratch. It is written into the City's taxi fare rules, Section 9-112-600 of the Municipal Code. Under the version the Council passed in April, the commissioner may authorize a surcharge only when both AAA's current average and its month-ago average price for regular gas in the Chicago area are at or above $5 a gallon. If the current average then stays below $5 for seven straight days, the commissioner may end it, and drivers must stop. A driver who adds a surcharge when it is not allowed can be fined $100 to $500 for each fare, according to the [ordinance text](https://www.chicagopolitics.org/files/clerk/matterattachmentspublic/96aed0a9-99ea-4a8a-a27d-a65f587f6969.pdf).

The surcharge is figured on the meter fare before tolls and other fees, the Sun-Times reported.

## What our records add

**The Council has set these rules before.** In September 2022, the Council passed an ordinance from Mayor Lori Lightfoot amending the taxi fuel surcharge rules ([O2022-2373](/matter/O2022-2373)).

**The Council raised taxi fares in April.** On April 15, the Council passed Mayor Brandon Johnson's taxi ordinance, which rewrote the fare table, raised fines for unlicensed cabs and restated the fuel surcharge rules ([SO2025-0019931](/matter/SO2025-0019931-adding-specifications-taximeter-use-modifying-rules)). The vote was 49 to 1. Ald. Brendan Reilly (42nd) voted no.

How each ward voted: [SO2025-0019931](https://www.chicagopolitics.org/matter/SO2025-0019931-adding-specifications-taximeter-use-modifying-rules)

At the April 13 License Committee hearing, the BACP commissioner said taxi fares had not changed since 2016 and proposed an increase of about 20% to the time and distance rates, along with a higher cleaning fee ([watch](https://www.chicagopolitics.org/meeting/2328D8AA-B027-F111-8341-001DD80F4002?t=2896)). The commissioner said the taxi industry had asked for the change and the department was presenting it on the industry's behalf ([watch](https://www.chicagopolitics.org/meeting/2328D8AA-B027-F111-8341-001DD80F4002?t=3826)). An assistant commissioner explained the basis for the $5 fuel threshold ([watch](https://www.chicagopolitics.org/meeting/2328D8AA-B027-F111-8341-001DD80F4002?t=3961)).

Members' questions:

- Ald. Bill Conway (34th) asked how the new rates compare with Uber's ([watch](https://www.chicagopolitics.org/meeting/2328D8AA-B027-F111-8341-001DD80F4002?t=3703)) and said taxi fares had fallen behind rideshare prices and that he supported the increase ([watch](https://www.chicagopolitics.org/meeting/2328D8AA-B027-F111-8341-001DD80F4002?t=3839)).
- Reilly asked whether inspection requirements would change and how many investigators enforce taxi rules citywide ([watch](https://www.chicagopolitics.org/meeting/2328D8AA-B027-F111-8341-001DD80F4002?t=3490)).
- Ald. David Moore (17th) said taxis remain important for people with disabilities and seniors ([watch](https://www.chicagopolitics.org/meeting/2328D8AA-B027-F111-8341-001DD80F4002?t=4181)).

## What's next

The surcharge stays on until gas falls below $5 a gallon long enough for BACP to end it. BACP's [2027 budget hearing](https://www.chicagopolitics.org/meeting/8A97D1CA-92C9-F111-AAAE-001DD80B58E5) before the Council's Budget Committee is Nov. 4, where members can ask how the department enforces the rule and how many public vehicle investigators it has.

*Sources: [SO2025-0019931: taxi fare and equipment ordinance (roll call)](https://www.chicagopolitics.org/matter/SO2025-0019931-adding-specifications-taximeter-use-modifying-rules); [O2022-2373: taxicab fuel surcharges](https://www.chicagopolitics.org/matter/O2022-2373).*


## Legislation in this story

- [Amendment of Municipal Code Chapters 9-104 and 9-112 adding specifications for taximeter use and modifying rules on taxicab equipment requirements and inspections, license fees and new service fare rates](https://www.chicagopolitics.org/matter/SO2025-0019931-adding-specifications-taximeter-use-modifying-rules) (SO2025-0019931)

## Sources

1. City Clerk: [SO2025-0019931: Amendment of Municipal Code Chapters 9-104 and 9-112 adding specifications for taximeter use and modifying rules on taxicab equipment requirements and inspections, license fees and new service fare rates](https://chicityclerkelms.chicago.gov/Matter/?matterId=8EF0B273-1F9A-F011-B4CB-001DD80F82AD)
2. City Clerk: [SO2025-0019931, Legislation: O2025-0019931 Ordinance.pdf](https://occprodstoragev1.blob.core.usgovcloudapi.net/matterattachmentspublic/89e5a434-d4bd-470d-bad9-aa9f4ccab362.pdf)
3. City Clerk: [SO2025-0019931, Miscellaneous: O2025-0019931 Mayoral Letter.pdf](https://occprodstoragev1.blob.core.usgovcloudapi.net/matterattachmentspublic/929e4022-520a-49bd-a0f0-4456a947b0c4.pdf)
4. City Clerk: [SO2025-0019931, Legislation: SO2025-0019931 substitute.pdf](https://occprodstoragev1.blob.core.usgovcloudapi.net/matterattachmentspublic/96aed0a9-99ea-4a8a-a27d-a65f587f6969.pdf)
5. City Clerk: [SO2025-0019931, Committee Letter: SO2025-0019931 signed letter.pdf](https://occprodstoragev1.blob.core.usgovcloudapi.net/matterattachmentspublic/e929c6f3-5eab-42d4-b9cd-a5ca39f89428.pdf)
6. City of Chicago: [City Council, Apr 15, 2026: meeting video](https://vimeo.com/1183109138)
7. City Clerk: [City Council, Apr 15, 2026: Agenda](https://occprodstoragev1.blob.core.usgovcloudapi.net/meetingattachmentspublic/e2ced7d9-a334-47c2-aa02-2d62c74061d6.pdf)
8. City Clerk: [City Council, Apr 15, 2026: Notice](https://occprodstoragev1.blob.core.usgovcloudapi.net/meetingattachmentspublic/66f2114d-05f6-4584-a2f7-fb1a5fa6bc70.pdf)
9. Chicago Sun-Times: [Chicago Sun-Times reported](https://chicago.suntimes.com/transportation/2026/10/22/taxi-fuel-surcharge-gas-prices-high)
10. Chicago Politics: [SO2025-0019931: votes, timeline and summary](https://www.chicagopolitics.org/matter/SO2025-0019931-adding-specifications-taximeter-use-modifying-rules)
11. Chicago Politics: [City Council, Apr 15, 2026: transcript](https://www.chicagopolitics.org/files/transcripts/1183109138.txt)

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Source: https://www.chicagopolitics.org/on-my-block/chicago-taxi-fuel-surcharge-gas-prices-2026 · Chicago Politics, an independent tracker of the Chicago City Council. Guide for agents: https://www.chicagopolitics.org/llms.txt