If the industry’s demands for a relief from fuel charges and auto finance are not satisfied, the National Taxi Alliance (NTA) has threatened to take the government to court.
According to the group, recent increases in fuel costs have crippled the business, forcing it to pass the expenses on to customers.
In an already stressed economy, hefty hikes in fuel prices forced South Africans to dig further into their pockets earlier this month.
Petrol prices increased by R1.46 per litre in both 93 and 95, R1.48 per litre in diesel, and R1.28 per litre in illuminating paraffin.
“It is a major blow because it has lowered our bottom line and it is growing extremely serious on a daily basis, so we need to do something about it,” says NTA spokesperson Theo Malele. We’ll take them to court because we’ve discovered that when the government goes off the rails, the only way to get back on track is through the legal system.”
Another hike in the price of gasoline is expected.
Meanwhile, the Automobile Association (AA) predicts that the price of petrol will rise to R24 per litre in April, while the price of diesel would rise to R 23.60 per litre.
The main cause of the hikes, according to the organization, is the movement in international oil prices, which have risen to record highs in recent weeks as a result of the conflict in Ukraine and fears about Russian oil supply.
The Motor Industry Staff Association, a registered trade union for retail motor industry personnel, has since demanded that the government consider it when evaluating South Africa’s fuel price mechanism.
The group expresses concern over the rising price of gasoline and requests clarification.
Lumkile Mondi of Wits University’s School of Economics and Finance talks to SABC News on the country’s escalating fuel prices:
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