Major taxi price hikes could soon be on their way
· The South African
South African commuters could face higher taxi fares after the South African National Taxi Council (SANTACO) warned that further increases remain a possibility following the latest fuel price hikes.
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With petrol prices now above R30 a litre and diesel exceeding R33, taxi operators are under mounting pressure to cover their operating costs while keeping fares affordable for passengers.
SANTACO national spokesperson Rebecca Phala said the industry was deeply concerned about the latest increases, particularly as operators had raised fares only once this year.
“We are incredibly devastated to learn of yet another fuel hike, one that’s higher than what’s been recorded this year,” Phala said.
She explained that the industry had previously decided against implementing further fare increases because of concerns that commuters would no longer be able to afford the service.
South Africans are already spending a considerable portion of their income on transport, adding to the pressure on households facing rising living costs.
Taxi operators struggling with fuel costs
Phala said taxi operators were caught between the need to retain passengers and the rising costs of running their businesses and paying employees.
She added that the industry receives no government subsidy despite transporting approximately 15 million South Africans daily.
According to Phala, operators have told SANTACO that fuel costs are consuming an increasing share of their income, with some reportedly reaching the point where they are effectively working just to pay for fuel.
Taxi committees have also appealed against substantial fare increases, warning that commuters may struggle to afford higher prices.
SANTACO is therefore exploring possible solutions before making a final decision on fares.
SANTACO engages government and fuel suppliers
Phala said the association had been mandated to engage fuel suppliers to determine what assistance could be offered to the taxi industry, given its substantial fuel consumption and bulk-buying power.
The organisation is also scheduled to meet with the Ministry of Transport next week, with the latest fuel price increases expected to feature prominently on the agenda.
Discussions with government include the possibility of establishing a centralised funding system for the taxi industry, similar to arrangements available elsewhere in the public transport sector.
Such support could help ease the financial pressure on operators and potentially reduce the need to pass rising costs on to passengers.
Fare increases remain a last resort
Despite the growing financial strain, SANTACO says it does not want to introduce increases that could drive commuters away.
Phala stressed that the industry had to balance its financial sustainability with the affordability of public transport for millions of South Africans.
For now, the association is continuing its engagements with government and fuel suppliers in search of alternatives.
However, Phala made it clear that a taxi fare increase has not been ruled out and could become necessary if efforts to secure assistance prove unsuccessful.
Commuters will be watching closely for further announcements as negotiations continue and the industry assesses the impact of higher fuel costs.