Taxi associations are preparing to hike their fares this week and pass the cost of fuel increases on to consumers already hard-pressed by the high cost of living.
Bus operators have also warned that they would be looking to government subsidies to cushion the blow from the fuel hike set to take effect on April 1.
The increase is driven by the ongoing conflict in the Middle East, with South Africans now expected to brace for record-breaking price increases from Wednesday. A litre of petrol is expected to increase by as much as R5 and diesel by up to R10.
SA National Taxi Council spokesperson Rebecca Phala said fare hikes were necessary due to the special circumstances.
“Santaco is the mother body of...over 1,200 associations, including short-distance and long-distance operators. When we determine an increase, we don’t only look at petrol; there are many factors, such as instalments and services,” she said.
“The exact percentage of any increase will be determined by the respective associations because it is their prerogative. They understand that if they increase by R10, it might push commuters away. They know the dynamics of commuters,” Phala said.
Sowetan understands that one taxi association in Gauteng has already increased its fares by R5, with another increase expected after the official announcement of new fuel prices.
The Johannesburg-Vosloorus Taxi Association, which announced its new increased fare structure earlier this month, said prices were likely to increase again after April 1.
“We haven’t discussed increasing the hike to match it [the fuel price increase] but if the increase does start to affect our ability to get petrol...there might have to be another increase to help us with costs,” said spokesperson Jerome Kunene.
President Cyril Ramaphosa has directed the National Treasury and the department of mineral and petroleum resources to urgently meet and formulate measures to cushion South Africans from the anticipated hike.
The first meeting between the Treasury and the department took place on Monday evening.
Terry Murugan, president of the Southern African Bus Operators Association, said they still need to engage with transport forums before increasing prices.
“Companies have their own negotiations with transport forums in the areas they operate in,” he said. “It’s unlike the taxi industry, where associations can make a decision. At the moment, the focus is on how to engage with these forums and find a middle ground, understanding the plight of passengers and the rising costs affecting everyone. We are not yet sure how we want to implement that.”
Murugan added that while companies may be able to absorb the impact for a month or two, they have also appealed to the government for assistance.
This sentiment was echoed by SA National Small Bus Operators Council treasurer-general Olivia Maponya, who said it had received assurances from the government but was shocked by the hike.
“This is challenging, and it’s not something we anticipated, given how quickly it happened,” she said. “It will be difficult, especially since most of our operators run smaller transport services with fixed rates. There’s no way we can go back to clients in the department of transport or the department of education in provinces and increase rates. So now we are caught between a rock and a hard place.”
Maponya said the fuel hike is beyond their control and that “we will try to ensure that, as a last resort, drivers do not have to use their own money. However, this is one of the risks we cannot control or fully mitigate. Our operators are not running large fleets; they don’t have reserves and live hand to mouth.”
Meanwhile, low-cost airline FlySafair has introduced a temporary fuel surcharge on ticket prices following a 70% increase in jet fuel prices at South African coastal airports within a single week.
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