London black cab cost data shows where vehicle and parts prices climb, fuel and home charging fall
- Perry Richardson
- 3 hours ago
- 2 min read
The cost of running a London black cab has increased by 4.01% year-on-year, according to Transport for London’s (TfL's) latest cost index comparing 2024 and 2025 figures, with higher vehicle, parts and labour costs offset slightly by falls in fuel and home charging prices.
The data, used by TfL to inform taxi tariff reviews, shows the grand total benchmark rising from £79,425.25 in 2024 to £82,608.16 in 2025. The pence-per-mile equivalent increased from 361.02p to 375.49p.
Total operating costs rose 2.03%, moving from £35,458.42 to £36,179.19. Operating costs now account for 43.8% of the overall cost index, marginally down from 44.6% the previous year. The pence-per-mile operating cost increased from 161.17p to 164.45p.
Vehicle costs recorded one of the largest monetary increases. Annual vehicle costs rose 8.12%, from £8,533.32 to £9,226.33, increasing the per-mile cost from 38.79p to 41.94p. Parts costs also climbed 5.90%, up from £3,222.41 to £3,412.53, while tyres increased by the same percentage to £505.41 per year. Garage and servicing costs rose across both premises and labour, each up 5.90%, reflecting continued pressure in maintenance supply chains and workshop rates.
TfL data shows overall operating and earnings benchmark up year-on-year, shaping potential taxi fare review decisions
Insurance costs remained broadly flat, edging up 0.10% to £8,775.27 annually. Licence fees and Knowledge of London costs were unchanged year-on-year, with Knowledge costs dipping slightly in proportional terms from 1.2% to 1.1% of the total index.
In contrast, fuel costs declined. Diesel expenditure fell 8.05%, from £3,547.90 to £3,262.40, reducing the per-mile figure from 16.13p to 14.83p. Petrol costs dropped 7.50% to £1,811.20 per year. Electric rapid charging costs were effectively static, while home charging saw a sharper reduction of 13.79%, falling from £316.10 to £272.50 annually.
Social costs increased 5.60% to £2,162.99, while miscellaneous costs rose 5.90% to £809.76.
Average national earnings, which form the second major component of the index, rose 5.60% from £43,966.82 to £46,428.97. Earnings now represent 56.2% of the total index, up from 55.4% in 2024. The per-mile earnings benchmark increased from 199.85p to 211.04p.
The combined effect of higher vehicle acquisition costs, maintenance expenses and wage benchmarks has outweighed savings in fuel and home charging.
