The South African National Taxi Council (SANTACO) is the latest organisation to call on the South African government to review its plan to implement higher fuel levies from tomorrow.
Local fuel prices are expected to increase drastically from midnight, due to oil price pressures stemming from the ongoing Middle East conflict, a weak rand/dollar exchange rate, and the under-recovery of fuel prices.
Despite President Ramaphosa declaring that the government is working to mitigate the impact of increasing prices, SANTACO, civil action groups, and political parties are calling for further action.
SANTACO noted that the ongoing uncertainty over fuel prices and supplies is already leading to panic affecting daily taxi operations, necessitating possible fare increases.
“Reports of fuel shortages, limitations on refuelling volumes, and escalating diesel prices are already placing strain on taxi associations and operators across the country,” it said.
The council’s President, Abnar Tsebe, explained that it is urgently working to stabilise the situation and protect both its operators and commuters.
“We call on the government to immediately provide clear direction on fuel price expectations and to work with us on practical relief measures,” he said.
“The taxi industry remains committed to keeping South Africa moving, and we will do so in a way that balances sustainability with the needs of our commuters.”
Taxi associations retain the prerogative to determine fare adjustments based on operational pressures, and while no uniform increase has been declared, some have begun to communicate increases with commuters.
SANTACO assured commuters that any increases will be communicated through official notice boards at taxi ranks, inside vehicles, and via verified association communication platforms.
It also confirmed that fare adjustments would be considered carefully, as it recognises the critical role affordable transport plays in economic participation.
SANTACO noted that stakeholders need to understand that fare increases currently under consideration are a direct response to the exceptional and immediate pressures experienced on the ground.
The council hopes to engage with the government to discuss both immediate and long-term challenges, seeking critical interventions to protect its commuters.
It continues to propose the adoption of a commuter-centred subsidy model, and calls on the government to consider a temporary suspension or relief on fuel levies.
Shielding South African motorists and commuters
The DA’s Spokesperson on Finance, Dr Mark Burke, noted that South African households are in the line of fire of the oil price shock.
He added that sharp petrol price increases will drive up taxi fares and negatively affect economic growth.
“We need to protect South Africans from them, especially if the price we pay is less patronage,” said Burke.
The DA revealed that it is willing to work with Finance Minister Enoch Godongwana to urgently reduce the Road Accident Fund (RAF) levy and the General Fuel Levy by 50% for as long as possible.
“Combined, the two levies contribute R6,35 to the overall price of fuel,” noted Burke.
“A 50% reduction would dampen increases by R3,17 and provide immediate and essential relief to South Africans who are staring down the barrel of a massive petrol shock.”
The DA noted that it is aware that a pause would affect tax revenue and RAF funding, totalling around R6.5 billion per month, but explained that the shock of not protecting South Africa’s economy is likely far larger.
“The Sharp petrol price increases will hurt GDP, increase inflation, and cripple household budgets,” highlighted Burke.
“In the long run, South Africa’s finances will not only be healthier because we were able to mitigate this oil shock, but they will be stronger because spending will be less wasteful.”
He explained that citizens should not be forced to carry the full cost of an international conflict outside of our control.
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