The South African National Taxi Council (SANTACO) is trying to establish ways to mitigate the impact of fuel price hikes for both operators and commuters, but has expressed grave concern and called on the government to intervene.
This is as the country waits with bated breath for any confirmation from the Department of Mineral and Petroleum Resources regarding fuel prices for April. Fuel price adjustments usually take effect on the first Wednesday of the new month, but it is yet to be announced what the adjustments for April will be. This is especially considering the growing global crude oil costs.
SANTACO, in a statement on Monday night, said reactions to possible major fuel price hikes have already had an impact on taxi industry operations, with some associations already having increased fares.
Spokesperson Rebecca Phala noted that individual associations can determine taxi fare adjustments based on operational pressures.
“While no uniform fare increase has been declared, some taxi associations have begun to communicate increases with their commuters. Therefore, commuters are advised that all changes and increases will be communicated transparently through official notice boards at taxi ranks, inside vehicles, and via verified association communication platforms,” said Phala.
She added that decisions on fare adjustments will be made with careful consideration.
At the same time, SANTACO noted that fare adjustments are not only determined through fuel cost but also an assessment of “multiple operation and administrative cost pressures, including vehicle maintenance, financing, licensing, and other overheads”.
“It is important for all stakeholders to understand that any fare increases currently under consideration are a direct response to the exceptional and immediate pressures already being experienced on the ground, including supply constraints and rising costs at some fuel stations.”
Meanwhile, the council said it will work with government and industry stakeholders to determine the best course of action to address both immediate and long-term challenges. It emphasised that it plans to “urgently” meet with government stakeholders in this regard.
“We are acting with urgency to stabilise the situation and protect both operators and commuters. We call on government to immediately provide clear direction on fuel price expectations and to work with us on practical relief measures. The taxi industry remains committed to keeping South Africa moving, and we will do so in a way that balances sustainability with the needs of our commuters,” said the SANTACO President Abnar Tsebe.
SANTACO stated that it’s considering several interventions, such as the adoption of a commuter-centric subsidy model, the temporary suspension or relief on fuel levies for public transport operators and prioritising access to fuel for transport operators.
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