Anticipated fuel price increases this week have sparked anxiety among commuters and transport operators alike as taxi fares increase.
The Gauteng-based Randfontein Taxi Owners Association (RATOA) has announced a fare increase of up to R3 per passenger in a bid to stay afloat.
The increase represents a strain through the taxi industry, which is considered the backbone of the public transport system.
Call for relief
Xoliswa Macingwane, Head of Economic Regulation at the Fuels Industry Association of South Africa, said global factors drive fuel price changes but government policy influences local prices through the regulated pricing system.
Macingwane highlighted that taxes make up a large portion of fuel costs but added that the government can still ease pressure on consumers by adjusting levies or offering targeted relief.
Lesenyeho Sefanya, secretary of RATOA, said the decision was not taken lightly, as operators attempt to balance rising operational costs for the taxi business with the fragile finances of their passengers.
“Running costs increase as oil prices spike, and this forces us to increase taxi fares to keep the business sustainable,” said Sefanya.
Geopolitical pressure
Global oil prices have climbed sharply in recent weeks, driven largely by escalating tensions in the Middle East, which has impacted the Strait of Hormuz. Central Energy Fund (CEF) data has shown that petrol unleaded 95 would increase by nearly R6 while diesel is expected to increase by over R10.
Fuel is one of the largest expenses for taxi operators and often accounts for a share of daily operating costs. Sefanya said even small increases at the pump can be felt but passing on these costs to commuters is of great difficulty.
He said taxi clients are often people that strive to make ends meet and always need to be considerate of them.
“This means we cannot randomly and recklessly increase prices because they have to make it where they want to go and come back to feed their families.
“The R3 increase is charged for each passenger. While it may seem small, when a taxi carries about 15 passengers, the total adds up. This gives taxi operators some help, although limited, to cope with rising fuel costs,” said Sefanya.
Strain on commuters
The increase may still add pressure on households already grappling with high living costs, stagnant wages and persistent unemployment.
Sefanya said he realises the geopolitical forces involved, suggesting that local authorities have limited control over the situation but called for intervention should the Middle East war persist, causing a further surge of the fuel price.
Fare adjustments regulation
He said industry regulations limit how frequently fares can be adjusted, leaving operators exposed during prolonged periods of volatility.
“We cannot increase taxi fares twice within three months but if this continues then we will be put into a corner, it is going to have a huge impact on us quite negatively. At this point, we feel quite helpless and cornered,” said Sefanya.
The Democratic Alliance last week raised concerns about the anticipated fuel increases, saying government should consider reducing the fuel levy by 50% to ease pressure on already struggling households.
Mark Burke, DA finance spokesperson, announced the fuel levy pause plan which would cut the general levy and the general road accident levy by half for a combined R3 reduction in fuel costs.
“We have put together a funded plan, meaning we are able to fund this without increasing taxes for South Africans and we are calling on the ANC to work with us to avoid the train smash heading to South Africans in the form of an unaffordable petrol and diesel increase,” said Burke.
