Maximum taxi fares could be set to rise by 5.35%

Environment & Infrastructure is proposing a 5.35% increase.

The maximum fare was already increased by 3.34% at the beginning of this year to cover the preceding two-year period.

Another increase was not due to be considered until the end of 2022.

However, the Guernsey Taxi Federation met recently with members of Environment & Infrastructure and Policy & Resources to say drivers were struggling to cope with very significant increases in fuel costs.

Following two challenging years because of the Covid pandemic, taxi operators are now being especially impacted by fuel costs but unlike many other sectors, regulations mean they are not able to freely adjust their prices to reflect changes to their running costs.

The January increase in the maximum fare does not reflect how much fuel costs rose in the past nine months, where the cost of diesel fuel has gone up by 23%.

The median price of fuel is currently about £1.58 a litre. This compares with about £1.40 at the start of this year – an increase of about 13%.

To reflect these increases the E&I is proposing to further increase the maximum tariff now.

Taxi fare increases are calculated using the established ‘Halcrow Formula’, and that same formula has been used to determine the level of this interim increase of 5.35%

This increase is a standalone measure and separate to the review of the taxi industry, which is currently under way and looking at various aspects of how operators are licensed.

The committee will consider those findings when the review has finished to determine what other, longer-term changes should be taken forward.

n Islanders can submit comments on the proposed increase by emailing passengertransport@gov.gg or writing to Traffic and Highway Services, Bulwer Avenue Office, Bulwer Avenue, St Sampson’s, GY2 4LR.

Submissions must be made by Thursday 14 April 2022.