NTA says they are deeply concerned about the financial pressures in the taxi industry

The National Taxi Alliance (NTA) says that they are deeply concerned about the geopolitical situation involving the United States of America and Iran, particularly the standstill around the Strait of Hormuz and its implications for fuel supplies and prices.

National spokesperson Theo Malele said South Africa’s taxi industry is directly affected by these developments, as commuters and other citizens already face severe cost-of-living pressures.

Response to fuel levy relief

“We are closely monitoring these developments before deciding whether taxi fares can remain at their current levels or whether increases will become unavoidable,” Malele said.

Despite welcoming the temporary fuel-levy relief announced by the Minister of Finance, Enoch Godongwana, Malele said inviting government intervention must not be taken as confirmation that taxi fares will remain unchanged.

“The industry continues to charge what are, in effect, ‘charity fees’, rather than market-related fares that adequately reflect the cost of providing transport.”

Operators are struggling

Malele added that this reflects the difficult circumstances of the communities’ taxis serve, but it places an increasingly unsustainable burden on operators.

“The industry cannot continue absorbing escalating fuel costs indefinitely while failing to break even.”

The NTA is undertaking detailed cost calculations and consulting extensively to assess the actual operating conditions on the ground.

‘No final fare adjustments’

“Our decision must take account of both the affordability of transport for commuters and the financial sustainability of the operators who provide this essential service,” Malele said.

Emphasising that no final decision on fare adjustments has been made.

“Once our calculations are concluded, we will communicate whether current fares can be maintained or whether material conditions require us to announce an increase,” he concluded.