Celani Sikhakhane
The taxi industry in KwaZulu-Natal says it’s difficult to continue doing business with the high fuel prices that came into force on Wednesday.
Some owners say they are even considering taking their taxis back to the dealerships as petrol prices make it impossible to continue.
The price has jumped to R25 per litre which is the highest ever fuel hike.
Mkhulu Masondo of the Klip River Association in Ladysmith told Scrolla.Africa that prices have soared even for vehicle parts such as tyres.
“We usually increase our taxi fare once a year but this time we are facing something we have never seen in the history of our work,” he said.
“This time we are negotiating with our customers about this issue we are facing so that we can agree about the increase. Truth be told we are no longer making any profits due to this unusual fuel hike.”
The rural town of Nquthu was brought to a standstill after it was proposed that taxi fare be increased by R2. The community took to the streets and blocked all movement of taxis, which affected economic activities such as shops and banks.
In KZN the call has been intensified for the provincial government to set aside funds to subsidise rural communities that are always struggling when fuel prices rise.
Member of the KZN Legislature Otto Kunene said rural communities and businesses always suffer the most and this time government intervention is needed.
He said that if no funds are immediately available for subsidies, the government should forge partnerships with stakeholders such as businesses, nationally and abroad.
“Measures such as possibly negotiating with organised business to consider instituting a price freeze of basic necessities would go a long way to help those consumers that are already battling due to exorbitant fuel prices,” said Kunene.
On Tuesday, Finance Minister Enoch Godongwana said the government is looking at extending the reduction in the fuel levy to ease the burden on communities, especially the poor.
