By Mpho Khumalo
The South African National Taxi Council (SANTACO) has warned that individual taxi operators will decide on fare increases, and it’s likely to be passed on to consumers.
According to reports, petrol prices are expected to rise by over R5 per liter, while diesel prices could increase by around R10 per liter. This is due to global energy market turmoil, including the conflict in the Middle East and a weaker rand.
“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 Jerome Kunene, spokesperson for the Johannesburg-Vosloorus Taxi Association.
The increase will have a ripple effect on the economy, with logistics companies likely to pass on the costs to retailers, leading to higher grocery prices. The South African Reserve Bank is also facing a tough spot, as high fuel costs drive up inflation, making interest rate cuts unlikely.
The government is under pressure to provide relief, with calls to suspend or reduce the fuel levy to cushion the economy. However, with strategic oil reserves limited, it’s unclear what measures can be taken.
