The surcharge had helped cab owners defray the rising cost of gasoline, which reached an all-time high of $4.14 per gallon in the city in July.
As of Tuesday, the average price of fuel at city pumps was $2.03 per gallon; in some suburban and New Jersey communities, prices were even lower.
The so-called flag drop rate - just to step into a cab - will remain at $2.70.
The Philadelphia Parking Authority's Taxicab and Limousine Division regulates fares for 1,800 cabs and 2,000 limousines.
