Sat. Oct 31st, 2020

Commuters dealt a blow as taxi prices set to increase

city of cape town taxi rankAnother pinch for our thinning wallets.

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The South African National Taxi Council (Santaco) has confirmed that there will be an increase in taxi fare this winter. The transportation body assured commuters that these increases would not be unreasonable.

Taxi prices set to increase from June

As reported by EWN, Santaco had warned that the increase would be subject to submissions from other associations on what their proposed increases were.

“We are going to bring the matter down to the ground so that they can propose the percentages that they are looking at.

“These will differ from one route to another… we’ve got local operations, long-distance operations…” Santaco’s PR officer, Midday Mali, said.

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While this aspect of the process has not yet been finalised, Santaco was able to confirm that the increase was motivated, largely, by rising fuel and electricity prices.

What prompted Santaco’s decision?

On Wednesday, petrol prices went up by R1.31 for 95-octane and 84 cents for diesel. April’s hike comes off the back of another hike that gripped motorists in March.

As it stands, it is likely that these prices will increase further into winter. As reported by Business Tech, Ayanda Msimang from law firm Shepstone Wylie revealed that because the Carbon Tax Bill will come into effect on 1 June, this may impact on the prices of fuel and electricity.

“This may affect the prices of petrol and diesel as petroleum producers and refiners will have to factor the carbon tax in their value chain assessment, particularly on diesel as the proposed carbon tax will result in a higher tax on diesel than on petrol due to the higher carbon intensity of diesel fuel relative to petrol,” Mali said.

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“It is, however, unclear at this stage whether the 11 c/litre tax for petrol and 13 c/litre tax for diesel will result in immediate fuel price increases or whether the petroleum industry will be willing to absorb the additional costs,” he added.

The transportation body stated that it empathised with the plight of commuters, who have to deal with rising costs. This is why, Mali said, the increase will not be profit-centric.

“We are not just going to increase to make a profit, but the increase is to cover the costs that we are incurring in the business.” he said.

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