NTA warns fuel price hike threatens taxi industry’s sustainability
The National Taxi Alliance (NTA) has warned that the hefty increase in fuel prices threatens the industry's sustainability.
On Tuesday, Finance Minister Enoch Godongwana announced a temporary reduction of R3.00 in the general fuel levy, effective from Wednesday until 5 May, in an effort to soften the blow.
Nonetheless, the price of both grades of petrol increased by R3.06 per litre, and diesel by R7.37 and R7.51 per litre, depending on the sulphur content.
The department attributed the increases to a surge in global crude oil prices and ongoing conflict in the Middle East, which has significantly raised the cost of fuel imports in recent weeks.
NTA spokesperson Theo Malele said every fuel cost hike hits operators directly, threatening the sustainability of a system that transports roughly 80% of commuters across the country.
"This has a ripple effect in that, one, it further squeezes our profit margins, which are already stretched. Secondly, it actually makes maintenance of the vehicle difficult because the price of spares would actually follow suit with the increase in fuel.”
The NTA insists that these stopgap solutions are not enough, stating that what the industry needs are sustainable, long-term strategies.
“I think it's important that the government begins to subsidise the passenger so that it then becomes the passenger's choice as to which mode they intend to use on a particular day, along a particular route. So it must just take care of the South African citizens,” Malele said.
He warned that taxi operators may have no choice but to adjust fares up to R3 - R6 per passenger for local trips and R10 - R30 for long-distance travel.
"The fare increases will be phased in starting from today, going forward. As I speak to you, our members are pretty aware of these changes already."
The NTA said immediate and meaningful action is required to protect the taxi industry and ensure that affordable transport remains accessible to all South Africans.
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