Taxi asssociation warns that increases in fares are inevitable following the increase in the petrol price.
Cape Town - Taxi industry bosses were expected to meet on Wednesday to discuss what action to take following the 72c rise in the price of petrol on Tuesday. 

South African National Taxi Council spokesman Thabisho Molelekwa said the hike had placed the industry in difficulty.

“We are in a serious quagmire as the taxi industry," he said. "We are having a national executive committee meeting today that will give us a way forward.”

He said fares were raised slightly in 2017 but the highest increase in five years could be in the pipeline.

"Some areas requested that we consider the commuters when it comes to an increase, but we are hard-pressed," he said. "Our NEC will give us direction but. however we deal with it, we wish to prioritise the community, and we hope they can bear with us and trust us.”

Inevitable

Automobile Association spokesman Layton Beard said an increase in fares in the public transport sector was inevitable following the increase in the petrol price. The hike was, in part, due to “the addition to the fuel levy and the Road Accident Fund levy”.

Golden Arrow bus service spokesman Bronwen Dyke-Beyer said fares would not be adjusted immediately.

“The significant diesel price hike and VAT increase will increase operational costs substantially," she said, "as fuel makes up 25 percent of our operational costs. The company will do its best to absorb the increases.”

Any increase in fares would be implemented after discussions with the Western Cape Transport Department.

“A decision to increase bus fares is never taken lightly or without careful consideration," Dyke-Beyer said. "The previous adjustment was largely necessitated by rising prices, including soaring fuel costs, and was only considered after all other cost-absorption measures had been explored and exhausted.”

Cape Times