Commuters brace for taxi fare increase as fuel price set to soar

SOUTH Africans will soon have to dig deeper into their pockets as Santaco warns taxi fares may rise in response to soaring fuel costs.

Petrol prices are expected to increase by up to R5 per litre and diesel by more than R10 from April 1, driven by higher international oil prices, a weaker rand, and tax levies.

The price increases are a result of the ongoing war in the Middle East.

In an interview, IOL spoke to Santaco spokesperson Rebecca Phala, who said the organisation was already contemplating increasing taxi fares to help operators cope with the rising costs.

She noted that while Santaco provides ongoing guidance on key considerations when reviewing fares, the authority to decide on the timing and extent of fare adjustments rests with individual taxi associations affiliated with the organisation.

Phala also revealed that "some associations have already implemented increases, while others are in the process of finalising their decisions".

"Yes, we are. The anticipated fuel price increases, coupled with concerns around supply constraints and early price adjustments at some petrol stations, are already placing significant pressure on the taxi industry. As a result, many taxi associations are being compelled to consider fare adjustments," Phala said.

"It is important to note that taxi fares are not determined by fuel prices alone, but by a range of operational factors, inclusive of vehicle instalment costs, admin costs, vehicle maintenance, and business growth prospects. Given the current urgency and prevailing economic conditions, fare increases have become necessary for associations to sustain their operations".