NTA warns taxi fare hikes ‘unavoidable’ amid oil price surge
South Africa’s taxi industry warns of imminent fare hikes as fuel prices surge, urging the government to cut levies, with operators saying rising costs will heavily impact commuters and transport services nationwide.
The National Taxi Alliance is urging government intervention as fuel prices are set to surge on Wednesday, threatening the taxi industry and commuters.
Speaking to SABC News, spokesperson Theo Malele says fare increases will be unavoidable without support.
This will affect the transport sector, including learner transport.
Malele calls for the reduction of fuel levies to cushion the blow for commuters:
“Really, this is going to be very heavy if the government does not come to the party. We just have to, as an industry, lock horns and look for the best possible pricing structure.”
The South African National Taxi Council has already warned that, while fare hikes are usually introduced in July, fuel price hikes could lead to an earlier-than-usual increase.
Santaco says that with the country bracing for massive fuel cost hikes in April, taxi operators will have no choice but to increase prices to stay afloat.
While consumers wait for confirmation from the Department of Mineral Resources and Energy, indications are that a litre of petrol could rise by around R5,00 and diesel by more than R10,00 next month.
Surging global oil prices following the escalating conflict in the Middle East have made fuel imports more expensive.
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Santaco’s Sfiso Shangase has described the situation as “unavoidable”, saying increases to taxi fares won't be fixed and will vary depending on the distance and route.
"We shall then take a position to also increase our affairs for commuters. But this increment, it is definitely going to be done at an association level. It could be done in a staggered format because of the different long distances and short distances that we are performing services for. We are under pressure.
"It's beyond our control. These are the only measures which could enable us to survive."
Shangase added that while fare hikes are usually introduced in July, the expected fuel price shock could lead to an earlier, unusual increase.
"If there wasn't going to be any increment in April, we shall have to be working based on our norm, which is the 1st of July. It is going to be dependent on several factors because we are actually required to look into the business ideology and the concept itself. We need to look into how are we going to be able to sustain ourselves in the business itself.
"There are various factors which are going to inform, it's not going to be the normal because the situation is abnormal, then it requires abnormal intervention."
