Chicago Area Local News

CHICAGO (CBS) ― Mayor Richard M. Daley is backing a fuel surcharge to help Chicago taxi drivers deal with the high cost of gas – and don't look for relief anytime soon.

The price of crude oil set another record Thursday morning, trading at $110.70 a barrel.

At the pump, AAA says the nationwide average is a record $3.26 per gallon. In Chicago, gas now averages $3.40 per gallon, and there are concerns that prices may crack the $4 mark later in the year.

As CBS 2's Rafael Romo reports, new proposal, in the simplest of terms, means consumers would have to pay $1 more per ride if approved. Some Chicago residents are already complaining, while others say it's about time cab drivers get their fair share.

That was Mayor Daley's sentiment in introducing the ordinance.

"There have been meetings with the taxi drivers and all that, you know, the cost of gasoline is going up," Daley said, "and that is hurting everyone, including Chicago taxi drivers."

After striking out three times last year in their quest for a temporary surcharge or permanent fare hike, cabbies finally hit paydirt. Consumer Services Commissioner Norma Reyes, who slammed the door on a 24.4 percent fare increase last fall, said she has devised a "formula" to address the volatility of fuel prices, based on the setup used in Seattle.

Under the plan, a 50-cent surcharge would automatically kick in whenever gas prices rise to $2.70 a gallon for seven straight days. The surcharge would double to $1 whenever gas prices hit $3.20 a gallon for one week straight.

Cab drivers would then post a sign in their units, notifying customers about the surcharge.

"This really simplifies it for them and gives them the relief, and I think the other thing that is important here is that it also simplifies it for the consumer," Reyes said.

Cab drivers have not seen a fare increase since 2005, and they say it's time they got some relief from the dramatic increase in gas prices.

"It's a good idea because we're not making any money," said cab driver Osama Zitounh. "We have to make a living now. They raised the lease on us. They raised everything on us, so nothing to feed the kids."

The reaction from customers so far has been mixed. Many Chicago residents say they feel sympathetic to cab drivers trying to make a living.

"They have to make a living just like everyone else, and the fact is that if gas prices are rising – which they definitely are – it's going to be hard for cabbies to make a decent living," said Danielle Rich.

"If I was a cab driver, I would want to make extra money," said James Cochran. "If I'm paying extra money for the gas too so, you know, I think it's a good thing."

But not everyone is so enthusiastic about the idea. Many people who depend on taxis for their transportation needs say they feel like this is strike two for them after the soaring gar prices.

"I do not like it at all, because I drive from Indiana, and I have to pay for the increased gas already," said Robert Giosa, "and I don't want to have to pay for it when I'm taking a cab here."

"I think that's going to change my way of taking taxis," said Shelby Coffee of Chicago. "I have a U-Pass because I'm a Columbia College student, so I'm going to stick to the train from now on and not take my taxis around here so much."

Many Chicago cab drivers say they would rather see a permanent fare increase like the one they got in 2005. But they say they will take whatever they can get.

Reyes did not speculate on the possibility of a permanent fare increase.

"Eventually, obviously there's going to be a fare increase. We just have to look at it, look at what it would be and work with the industry in order to get one," she said. "But, for right now, the goal is to deal with it through a gas surcharge."

Last month, cabbies complained that City Hall was compounding their financial headaches-by tripling fines for a host of bad-driving violations in response to a 58 percent surge in passenger complaints--while ignoring their surcharge demands.

Reyes categorically denied that the surcharge was being introduced in response to those complaints.

"We've been working on this for five months," she said.

CBS 2's Rafael Romo and the STNG Wire contributed to this report.

(© MMIX, CBS Broadcasting Inc. All Rights Reserved.)

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