The cycle of ever-rising gasoline prices will have a ripple effect, with commuters facing higher travel fares. National Taxi Alliance (NTA) spokesman Theo Malele said the fuel hikes were a crisis of great proportions and that sober leadership was needed. He said that despite the taxi industry’s growth from 70% to 80% in two years, the government is turning a blind eye to its challenges. “The first [thing] what the government needs to do is introduce subsidization for commuters so that the industry can charge market-based rates as opposed to the current charitable rates. These charity rates are putting pressure on the industry.” Malel…
The cycle of ever-rising gasoline prices will have a ripple effect, with commuters facing higher travel fares.
National Taxi Alliance (NTA) spokesman Theo Malele said the fuel hikes were a crisis of great proportions and that sober leadership was needed. He said that despite the taxi industry’s growth from 70% to 80% in two years, the government is turning a blind eye to its challenges.
“The first [thing] what the government needs to do is introduce subsidization for commuters so that the industry can charge market-based rates as opposed to the current charitable rates. These charity rates are putting pressure on the industry.”
Malele said the government should also review scrapping vehicle recapitalization, which should increase to 50% of a new vehicle’s true value. He said it was strange that neighboring companies were charging less for fuel from South Africa.
“Governments should also review tariffs that are part of the fuel price mix. The minister of energy and [other] politicians need to wake up and smoke the same pipe as we do,” he said.
throwdowntv taxi driver Themba Mahlangu said the increase will affect everyone. “Now we have to raise prices,” he said. A standard journey currently costs R20 per person.
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“It has to go up because at the moment R20 is not even enough for a liter” [of fuel]† Mahlangu said he feels sorry for commuters who use two taxis a day because it will affect them even more. He said the last taxi fare increase was before the lockdown.
“I topped up R400 petrol in the morning, enough for three loads from Mamelodi to wherever they go. And then I’ll put R200 in to go home,” he said.
Mahlangu said he earned an average of R1,200 a day, of which R800 went to the bosses. “It’s R5,000 a week and we get a payment of 30% of that amount.”
Faried Plaatjies, owner of a small transportation company, said the rise in fuel prices is making it difficult for companies to keep their heads above water.
“We’ve been forced to raise our prices, but it’s a losing battle,” said Plaatjies, adding that filling a tank cost R700 two years ago, which took him a week.
“Now it’s over R1,000 and it won’t be nearly that long. It costs me R1,000 every three days. It’s a big part of my budget and the commuter’s budget.”
Economist Dawie Roodt said gasoline prices are not the only increase to come. “Other things will also increase and be part of the process of driving up inflation.
On a broad front, we saw the prices of various goods rise, which meant that people’s standard of living fell.” Roodt said it pushed up South African Reserve Bank interest rates, slowing the economy’s recovery.
“This meant more people would lose their jobs and people would get poorer,” he said, adding that SA may be preparing for another R1 plus increase sooner or later.