Is there a taxi fare increase on the cards?

The record increases in petrol prices in recent months have led the South African National Taxi Association (Santaco) something to consider with taxi fares.

Santaco has said it will review its decision not to increase taxi fares.

“The price of petrol is rising for the past [four] at least months, has cornered the industry. The pressure is too great, we will reconsider our decision to suspend the increases,” the taxi association said in a statement. tweet on Sunday morning.

“While fuel is a significant cost for taxi transport, it is not the only cost. All other costs have increased, fuel is simply the strongest increase. It challenges us to revise. It is now up to our national executive committee to finalize this matter,” Santaco said later on the day.

ALSO READ: Sharp fuel price hikes will hurt all South Africans – AA

Petrol prices in South Africa will rise from Wednesday 2 March.

The increases are as follows:

  • 93 and 95 unleaded petrol (ULP) – R1.46 per litre
  • Diesel 0.05% – R1.44 per litre
  • Diesel 0.005% – R1.48 per litre
  • Illuminating paraffin – R1.21 per litre

Consumers and the taxi industry are expected to feel the effects of the expected increase in fuel prices.

According to the Automobile Association (AA), 95 for inland areas will rise to R21.60 per liter, while in coastal areas it will cost R20.88 per liter “for the first time in history”.

The gains for March are mainly attributable to rising international oil prices as a result of the Russian invasion of Ukraine and would have been more severe had the rim not stabilized against the US dollar in recent weeks.

While gasoline prices will rise, Finance Minister Enoch Godongwana announced during his budget speech last week that fuel taxes will not be increased.

The General Fuel and Road Accident Fund (RAF) charge is currently R6.11 per litre.

Godongwana also confirmed that the fuel pricing model will be revised.

Subsidy taxi industry

Last October, Santaco in Gauteng expressed concern that the taxi industry is not being subsidized by the government after it decided not to increase taxi fares.

“As a taxi industry, we are not subsidized. So that’s why we’re forced, you know, to say that if we need to, we’re going to have to increase, if not based on the increase in gasoline, but economically, it’s going to hurt our wallets,” he said. Gauteng Santaco, Ralph Jones. EWN

According to Transport Minister Fikile Mbalula, the government aims to subsidize the taxi sector by April 1, 2021.

Mbalula confirmed this last month when he launched the disbursement of Covid-19 relief funds for taxi operators.

R1.135 billion is currently being paid out as a one-off payment to taxi operators.

Eligible operators will receive a one-time ex gratia payment of R5,000 as stated in the instructions dated 2nd December.

Mbalula said at the time that all funds could be disbursed in March.

READ MORE: Black Business Council pledges support to Mbalula’s plans to formalize taxi industry

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