Santaco says taxi fares may go up if the Middle East conflict keeps pushing fuel prices higher in South Africa.
About 15-million South Africans use taxis every day, and Santaco is concerned higher fares could push commuters away from taxis.
The South African National Taxi Council (Santaco) says taxi fares could go up if fuel prices keep rising, leaving millions of daily commuters at risk of paying more just to get to work and school.
Santaco spokesperson Rebecca Phala said the council is watching the Middle East situation closely. Fuel prices are rising sharply because of the ongoing war in the region, putting the entire taxi industry under pressure.
“The council is gravely concerned that, should fuel prices rise significantly as projected, there is a strong likelihood of losing patronage,” Phala said.
About 15-million South Africans use taxis every day to get to work, school and other essential activities, Santaco said.
Most working South Africans already live about 40km from their jobs. Many spend more than 40% of their income just getting to work.
Higher transport costs could push commuters away from taxis altogether, Phala said.
“Taxi fares are determined solely at the discretion of taxi associations,” she said. “If fuel prices increase substantially, associations will need to consider adjusting fares accordingly.”
The pressure on fuel prices comes as South Africans are already using less petrol and diesel. Consumption has dropped by 5.8-billion litres since 2015. The Covid-19 pandemic made things worse as companies moved to hybrid work models.
From 1 April, fuel levies are going up. The general levy for petrol rises by 9c/l and 8c/l for diesel. The carbon fuel levy goes up 5c/l for petrol and 6c/l for diesel. The Road Accident Fund (RAF) levy increases by 7c/l.
