Rug Merchants are non-player characters who operate Magic carpets for Ali Morrisane's flying carpet fleet. There is usually a monkey around these men.
They can be found at Shantay Pass, Uzer, the Bedabin Camp, Pollnivneach (north and south), Nardah, and Sophanem. South Pollnivneach and Shantay Pass are used as hubs.
The carpets require 200 coins to use, but this falls to 100 coins after doing the Rogue Trader miniquest (desert section - Blackjack or Clothes). With a ring of charos (a), you can reduce the price to 75 coins. (If the ring of charos (a) is used without completing The Feud quest, the price is 100 coins.)
After completing the Hard Desert Diary, all magic carpet rides become free of charge.