When the changes take effect, the starting price of a cab ride will stand at NIS 10.90 instead of NIS 12.30. In addition, an 11 percent reduction in cab meter fees will also take place by way of increased distances traveled before a payment threshold, as well as increased time increments when the cab is stopped.
The price reduction order was a product of a inter-ministerial committee's recommendation. It was signed by Transportation Minister Yisrael Katz (Likud) first, and became official after Minister Kahlon's signature was also attached.
This will be the first reduction in taxi fares since the prices were raised in June 2013, following a rise in global oil prices. Since then, even though gas prices—cab drivers' main expense—have gone down, fares have remained the same.
Cab drivers' associations fought against the forced reduction in prices, saying that drivers still have to contend with the rising costs of insurance and mechanical maintenance.