Fuel costs squeezing taxi operators: SANTACO

SANTACO says it has not ruled out a taxi fare increase as operators face record fuel price hikes, with petrol now above R30 and diesel over R33 a litre.

The association says it is engaging government and business to find solutions, while commuters already face mounting living costs.

SANTACO national spokesperson Rebecca Phala says taxi operators are also under pressure, having increased fares only once this year.

Phala says, “We are incredibly devastated to learn of yet another fuel hike, one that is higher than what’s been recorded this year, and really of late.

It comes at a time when the taxi industry has only ever increased fares once around May/April thereabouts.

We’ve since seen some other increases in fuel prices, however, we took a decision at the time to say we would not be increasing any further out of fear of chasing our commuters away.

Statistics show that South Africans are already paying a considerable amount of money towards their transportation.” PODCAST: She says the industry cannot afford to lose passengers, but must also cover the costs of running the business and remunerating those it employs.

Phala says the industry receives no subsidy despite moving 15 million South Africans daily.

Phala says operators have told the association that fuel is taking the bulk of the industry’s income, with some saying they are starting to work for fuel.

She says taxi committees have appealed against any hefty increase , warning that commuters would not be able to afford the service.

She says the industry has mandated its national office to engage fuel suppliers on what support they could offer, given the sector’s bulk buying power.

A routine engagement with the Ministry of Transport is scheduled for next week, with fuel prices at the top of the agenda.

Discussions with government also cover the possibility of a centralised funding system for the industry, as applies elsewhere in the public transport sector.

Phala says a fare increase remains possible, but would be a last resort while those engagements continue.