Fuel hikes won’t affect fare prices for taxi commuters now

WHILE motorists are forced to dig deeper into their pockets following the massive fuel price increases this week, taxi commuters in KZN can rest easy for now as fares are expected to remain the same.

South African National Taxi Council KZN Manager, Sifiso Shangase, told the ZO on Tuesday that the council had not yet made any decisions pertaining to fuel increases.

‘As it stands, until decided otherwise, taxi fares will only increase in July,’ said Shangase.

Minister of Energy, Jeff Radebe, announced last weekend that as of 3 April, motorists on the coast will have to pay R1.26 more for 95 unleaded petrol, R1.29 for 93 Octane and 77 cents more for diesel.

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‘April is an important month on the fuel price calendar to revise road and pipeline tariffs, as well as fuel and Road Accident Fund levies to be factored into the price structures of petrol, diesel and illuminating paraffin,’ Radebe said.

The depreciation of the rand against the US dollar (from 13.80 to 14.36 rand per USD) during the period under review was among the contributing factors to the increase in fuel prices.

This increased the contribution to the basic fuel price of petrol, diesel and illuminating paraffin by between 28 and 30 cents per litre.

The average Brent Crude oil price also increased from 64.04 to 66.01 US dollars per barrel during the period under review.

‘The main contributing factors were the tightening of stock levels in the USA and the US sanctions against Venezuela which were compounded by widespread power outages,’ the Energy Department said.

Local factors also contributing to the hike are increases in the fuel and road accident fund levies by 15.0 cents per litre and 5.0 cents per litre respectively.

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