The real cost of new taxi fares is much higher than customers were led to believe thanks to app fees, with fares due to start increasing by 12% from yesterday to help taxi drivers with operating costs.

But the €1 technology fee implemented by Ireland's main taxi app, Free Now, on August 1 has brought the increase up to 22% for a €10 taxi.

The cost was pointed out by Fine Gael's Neale Richmond, who said passengers now pay an extra 32% for their trip.

The Dublin-Rathdown TD said yesterday: "We see the main taxi app in Ireland at the moment has added a €1 technology fee. So, a €10 fare in Dublin city isn't just going up by 12%, that would have gone up €3.20 - so it's a 32% increase when you look at it."

However, if 12% of a €10 taxi is €1.20, an additional technology fee of €1 would bring the total increase to €2.20 - which is a 22% rise.

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The National Transport Authority (NTA) said the 12% rise "reflects the increase in operating costs for taxi drivers". But Mr Richmond said: "When the cost of living is going up for everyone, your average person is trying to get a taxi and can't.

"I think the fact that the NTA has simply reached for a 12% fare increase so unilaterally and lumped it all onto the shoulders of the people paying the taxi, is grossly unimaginative.

"There are far more imaginative things that could and should have been done first, such as reducing the fee for taxi drivers to renew licences.

"It's just going to make things more expensive for people."

Mr Richmond also claimed that the apps such as Free Now get the extra money being charged while taxi drivers continue to struggle. "Taxi drivers don't get that increase but the passenger does have to pay it," he said.

Meanwhile, spokesman for the National Private Hire & Taxi Association Jim Waldron said: "The 32% - the app companies get that, not the taxi driver."