Urgent.News

What's breaking now, across thousands of outlets.

Business

Fuel costs squeezing taxi operators: SANTACO

SANTACO says it has not ruled out a taxi fare increase as operators face record fuel prices

South African Taxi Operators Council (SANTACO) warns that escalating fuel prices are threatening the survival of taxi operators in the country. Petrol has risen above R30 per litre and diesel has crossed the R33 mark, causing significant financial strain for those operating in the industry. SANTACO's national spokesperson, Rebecca Phala, reports that the association is actively seeking solutions from government and business partners to address the issue.

The taxi operators have raised their fares only once this year, and the association has decided not to increase them further due to fear of losing customers. Phala stresses that the industry cannot bear the cost of running and paying its employees while also covering the hefty fuel expenses. The taxi industry serves around 15 million South Africans daily and operates without any government subsidies, yet fuel costs are taking up the majority of their income.

Several taxi committees have appealed to avoid substantial fare increases, fearing that such a move would burden commuters who are already grappling with rising living costs. SANTACO has scheduled a meeting with the Ministry of Transport to discuss potential support from fuel suppliers, given the industry's purchasing power. Discussions with government are also expected to cover the possibility of creating a centralized funding system for the taxi sector, similar to other public transport industries.

Written by urgent.news from SABC News's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.

Read the original at sabcnews.com →

More in Business

More from Thursday 8 October →