Taxi operators warn of possible fare increases as sharp fuel price hikes place pressure on the industry. Picture Credit: Witsvuvuzela
By AIsha Zardad
South Africa — South Africa’s minibus taxi industry is bracing for potential fare increases following a sharp fuel price hike that took effect on Wednesday, April 1, adding further strain to operators already under mounting cost pressures.
The South African National Taxi Council (SANTACO) confirmed that while the latest fuel adjustments include a relief measure, the scale of the increases — more than R3 per litre for petrol and over R7 per litre for diesel — will significantly impact the sector, which relies heavily on diesel-powered vehicles.
“The significant increase of over R7 per litre means the industry will continue to absorb the greatest impact of the current fuel price adjustments,” SANTACO National Spokesperson Mmatshikhidi Rebecca Phala said.
Government’s R3 fuel levy relief has been welcomed, but SANTACO cautioned that it offers only limited relief against broader operational pressures.
“SANTACO acknowledges and welcomes the R3 fuel levy relief as a necessary short-term intervention,” Phala said.
The sector, which moves millions of South Africans each day, operates in a largely deregulated fare system where pricing is set by individual taxi associations. SANTACO said associations across the country are currently reassessing their cost structures before taking any decisions.
“Taxi associations across the country are currently assessing the impact of these increases on their operational costs and profit margins. Based on these assessments, associations will communicate directly with their commuters regarding any potential fare adjustments,” Phala said.
Despite growing concerns, the organisation emphasised that any fare changes will not be rushed.
“SANTACO wishes to assure the public that any fare increases implemented by associations will be approached with caution, transparency, and responsibility,” Phala said.
The latest fuel hike — among the steepest in recent months — has been attributed to global oil price volatility and a weaker rand, according to earlier reports.
Economists warn that higher fuel prices tend to ripple through the economy, driving up transport costs, pushing food prices higher, and fuelling inflation.
For taxi operators, the impact is immediate. Many operate on narrow margins, leaving little room to absorb sudden increases in fuel costs without passing them on to commuters.
SANTACO said it remains in ongoing discussions with government to explore additional measures aimed at easing pressure on both operators and commuters.
“These engagements are critical to ensuring that the burden of rising costs does not disproportionately affect those who rely on public transport daily,” Phala said.
The organisation has also urged commuters to remain patient as the industry navigates the latest price pressures.
“SANTACO calls for understanding and cooperation from commuters during this challenging period, as the industry works to balance sustainability with affordability.”
