The taxi industry in the Western Cape is warning of possible fare increases as fuel prices continue to rise, placing mounting pressure on operators. Industry bodies say the sustained hikes are making it increasingly difficult for taxi owners and drivers to remain financially viable, despite efforts to shield commuters already burdened by the high cost of living.
Chairperson of the Cape Amalgamated Taxi Association, Nkululeko Sityebi, said the impact has been severe. “That is making a big negative impact on the industry as we speak,” he said, pointing to a recent diesel increase of around R6 per litre. “The price hike moved from about R22 to plus or minus R28, and most of us in the minibus industry are using diesel vehicles.”
Sityebi explained that operators have tried to absorb the costs rather than immediately passing them on to commuters. “We try to keep ourselves down so that we’re thinking of the commuter,” he said. However, the rising fuel price, coupled with global uncertainty, has added pressure. “It puts so much pressure on the driver as well as reducing income; the money they bring in is far less than we normally get.”
He added that the financial strain is affecting operators’ ability to meet vehicle instalments, with some unable to pay full amounts. “That is the challenge that we’re facing as we speak,” he said.
On possible government intervention, Sityebi said engagements are ongoing but stressed the need for long-term solutions. “We don’t want a temporary solution; we need mechanisms in place so that price hikes can be subsidised,” he said. While no concrete support has been implemented yet, he noted that government has shown willingness to engage and acknowledges the sector’s challenges.
Listen to the full interview below:
VOC News
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