Franschhoek taxi drivers will soon raise their taxi fares for the first time in three years, due to the increasing price of expenses.
This is according to Lesley Sikhupela, secretary of the Franschhoek Taxi Association.
The association will raise their taxi fares by R3 and the price increase will be effective from 1 August, said Sikhupela.
Taxi fares vary depending on the association’s different routes, which include the areas of Franschhoek, Paarl, Pniel, Stellenbosch and Klapmuts, according to Trevor Jafthas, chairperson of the Franschhoek Taxi Association.
Members of poorer households depend on taxis and buses for daily transportation, because cheaper modes of transportation, such as trains, are not in good condition. This is according to Hugo Pienaar, chief economist for the Bureau of Economic Research at Stellenbosch University, via email correspondence with MatieMedia. PHOTO: Joel Ontong
Factors for price increase
The expenses for taxi drivers have increased, which has led to the rise in fare prices, according to Sikhupela. Costs have increased for fuel, spare parts, tyres, the servicing of vehicles and other expenses, said Sikhupela.
This will be the association’s first price increase since 2019, according to Jafthas. In 2019, taxi fares rose by R2, he said.
The association did not want to raise taxi fares during the Covid-19 lockdown, said Sikhupela. This was because many taxi commuters experienced economic hardships during the lockdown, he said.
“Lots of people lost their jobs,” according to Sikhupela. “Covid had an impact on people. That’s why we chose not to raise prices in that time,” he added.
The Franschhoek Taxi Association will soon raise their taxi fees by R3, which applies to all the association’s main routes. This is according to Trevor Jafthas, chairperson of Franschhoek Taxi Association. The decision was made with regret, because it will negatively impact taxi commuters from poorer households, stated Lesley Sikhupela, secretary of Franschhoek Taxi Association. PHOTO: Joel Ontong
The bigger picture
The earnings of taxi operators are adversely affected by higher petrol prices, according to Hugo Pienaar, chief economist for the Bureau of Economic Research at Stellenbosch University, via email correspondence with MatieMedia.
“Movements in the international price of oil and global diesel and gasoline prices have a big impact on our imported cost of oil,” stated Pienaar.
The international price of these products has “increased sharply” over the past 12 months and that is why the price of domestic petrol has risen, explained Pienaar.
The rise in the domestic petrol price causes increases in taxi and bus fares, which, in turn, negatively impacts the members of poorer households, according to Pienaar. “This is a particular problem in South Africa where the cheaper transport modes such as trains are dysfunctional, so they depend on taxis/buses to get to and from work,” said Pienaar.
The association is aware of the negative impact the price increase will have on commuters, according to Sikhupela. “We’re transporting the poorest of the poor,” he stated.
Taxi fares are not expected to decrease soon, according to Jafthas. “Never in the history of the industry has there been a price decrease,” claimed Jafthas.
South Africa imports its oil from other countries and this oil is priced in US dollars, according to Hugo Pienaar, chief economist for the Bureau of Economic Research at Stellenbosch University, via email correspondence with MatieMedia. The imported cost of oil for South Africa is severely impacted when the international price of oil increases, said Pienaar. PHOTO: Joel Ontong