‘Fares need to rise due to fuel costs’
TAXI drivers are reluctantly wanting to increase their prices, after being denied tax relief.
A 5.35% rise in tariff has been put out for consultation. Tariffs have already risen once this year.
Ever-increasing fuel costs are impacting local taxi companies, which are still experiencing the ramifications of the pandemic.
Although tax relief was suggested to Policy & Resources and Environment & Infrastructure, Taxi Federation president Leon Gallienne said an increase in fares was ‘the only option’.
‘The increase does seem a large amount but fuel has gone up tremendously and it’s still on the rise,’ he said.
‘We were reluctant to take this risk and it wasn’t an easy decision. Unfortunately it was the only option on the table and it was getting more and more difficult.’
A review of the taxi industry is under way, which was given as a reason to why a tax cut was denied. A first draft of the review should be released in May.
‘It’s a very difficult situation – it is a short-term response and hopefully the review will come back with a lot of information on how the industry can improve,’ Mr Gallienne added.
‘Everyone is always reluctant to increase prices and we’re no different – we hope it doesn’t deter people from using taxis.’
Bazza’s Taxis owner Barry Harris said maximum taxi fares were increased by 3.34% at the beginning of the year, but fuel prices rise daily.
‘The only reason it’s going up is because the government won’t give [relief on] duty fuel,’ he said.
‘Most taxis will burn through £4,500-£6,000 worth of diesel or fuel in a year and £2,500 goes to the States.’
‘We need help now. We haven’t had a pay rise and are working on a loss from last year.’
Maintaining vehicles cost a significant amount, he added, with servicing required.
‘It’s a lot of expense to keep them roadworthy – we do at least five years’ worth of driving in one year compared to an average person.’
He said there was a way to go before the industry reached pre-Covid business levels.
Alpine Taxis owner Kevin Gaudion added: ‘We are starting to see a slight increase at the airport during the day, but it’s not quite back to where it was a couple of years ago.
‘Saturday evenings aren’t too bad but the rest of the week is hit and miss.’
He said the fare increase would impact the consumer.
‘It’s really hard because no one wants to see an increase put on fares... but there has been an increase in difficulties over the past months and we are only trying to run a business like everyone else.’
