Could South Africa’s taxi fares drop following recent fuel price cuts?
Despite fuel prices declining for the fifth straight month, taxi fares remain unchanged. Why is that?
Fuel prices have dropped for the fifth time since peaking at R25.49 in May 2024.
From food to travel, the cost of fuel affects almost every service and product, with noticeable increases in taxi fares and groceries being recorded this year.
Will the decrease in fuel lessen taxi fares?
Following the nationwide petrol price drop, National Taxi Alliance spokesman Theo Malele said: “We are still, however, nowhere near profitable margins as a business, and this is due to the non-subsidy of the taxi industry.
“As we step into the public transport month of October, we urge and encourage people to leave their vehicles and help promote public transport to offset the environmental degradation through our deposit of carbon emissions to help safeguard the future of human beings.”
In other words, don’t expect a reduction in taxi fares anytime soon.
How much will my fuel cost?
On Wednesday, 2 October , motorists were greeted with yet another price drop – this time by as much as R1.14.
The Department of Mineral and Petroleum Resources, which dictates the prices, reported that diesel will decrease between R1,12 and R1,14 per litre, while 93-grade petrol will decrease by R1,06 per litre and 95-grade petrol by R1,14 per litre.
That means fuel prices have decreased by around R4 in five months, with fuel and petrol currently hovering around the R20 to R21 mark.
This steady decline offers a much-needed reprieve for consumers and businesses alike, especially after a year of fluctuating costs that have impacted industries reliant on transportation.
However, with unpredictable global oil markets, this drop could provide short-term relief, though experts urge caution, as prices could rise again depending on international conditions.
Will fuel cost more inland?
Interestingly, it will; here’s a recent report by CarMag:
- Inland Petrol Unleaded 93 – R20.73 (down from R21.79)
- Inland Petrol Unleaded 95 – R21.05 (down from R22.19)
- Coastal Petrol Unleaded 93 – R19.94 (down from R21.00)
- Coastal Petrol Unleaded 95 – R20.26 (down from R21.40)
- Inland Diesel 500 ppm – R18.45 (down from R19.59)
- Inland Diesel 50 ppm – R18.57 (down from R19.69)
- Coastal Diesel 500 ppm – R17.66 (down from R18.80)
- Coastal Diesel 50 ppm – R17.81 (down from R18.93)
When do the prices change?
While fuel costs vary each month, the price changes on the first Wednesday of every month.