Taxi rates in some areas are set to fall in the coming months following suggestions from the commissioner for taxi regulation that some fares were too high.
Ger Deering has also ruled out adding a 50 cent surcharge to fares in compensation for the increase in oil prices, a concession sought by the National Taxi Drivers' Union last week.
Taxi fares until now have been decided separately by each local authority, leading to huge variance in charges around the State.
Mr Deering takes over responsibility next month for setting the fare. He intends to conduct a review of rates and will set a single national charge. "The fares around the country vary so much and fares are too high in some areas.
"I've even had taxi drivers contact me because they thought the fares in their areas were too high."
In some counties it was the hiring charge that was too high, he said.
This basic charge varies from 90 cents up to €3.75, with the higher charges discouraging customers from using taxis for shorter trips.
"I want to see a fare that first of all is value for money, that encourages use of a taxi particularly for short journeys, while at the same time making it worth people's while supplying the service. In some cases the hiring charge may be far too high. Having a graduated fare based on distance will make it easier to understand and more straightforward to use."
Mr Deering said he could not meet driver's demands to add an extra charge for fuel to the fare because he did not have the legal authority. He added the proposed 50 cent surcharge was not practical anyway.
The taxi drivers' union called for the introduction of the charge last week because of the rapidly rising cost of petrol and diesel. It had hoped the charge would be in place by the middle of next month.
"There's been a lot of talk about a fuel surcharge. There seems to be this notion that I can just shove 50 cents on, I can't," Mr Deering said. "There's a particular process in law that has to be gone through."
To make any change to what drivers charge, the regulator must make a maximum fares order. This involves consulting local authorities, the Taxi Advisory Council and the Legal Metrology Service. There would be a major overhaul of fare structures in early 2006, he said, and fuel costs would be considered.