The South African National Taxi Council (SANTACO) has welcomed the government’s temporary R3 per litre reduction in the fuel levy, which takes effect today and runs until May 5. The relief measure comes amid rising global oil prices linked to the ongoing conflict in the Middle East, placing increased pressure on the transport sector.
However, SANTACO says the intervention may offer only limited relief for the taxi industry. National spokesperson Rebecca Phala explained that most taxi operators rely heavily on diesel, which has seen a sharp increase. “It will not necessarily make a difference on a large scale for the taxi industry because a major bulk of our vehicles use diesel,” she said.
Phala noted that diesel prices have surged significantly, adding strain to already tight operating margins. “You would have seen that diesel has gone up by seven rand and that in itself is quite steep already,” she said. She also raised concerns about the lack of strict regulation in diesel pricing, which allows retailers greater flexibility in setting prices.
“Diesel in the country is not strictly regulated by the government, which effectively gives retailers leeway in determining pricing,” Phala added.
She said taxi associations are now reviewing their financial positions to absorb rising costs while remaining sustainable. “Our associations are now having to assess their profit margins to ensure we remain profitable and don’t chase commuters away,” she said.
SANTACO maintains that while the levy reduction is welcome, broader structural challenges in fuel pricing continue to impact the industry.
Listen to the full interview below:
VOC News
Photo: VOCfm
