While commuters are still digesting last month’s rise in minibus taxi fares of as much as 20%, the bus industry has announced that the latest increase of diesel by R1,28 a litre will add between 3% and 4% to the cost of operating bus services.
Diesel costs represent between 20% and 30% of the total operating cost of a bus. Since April last year the price of diesel has increased by R5,90 a litre to the latest guide price of R9,38.
This represents a 59% increase in the past year alone. At present the industry is implementing its 2008 increase, which covers other costs such as labour and increased capital owing to higher interest rates.
Eric Cornelius, executive manager of the Southern African Bus Operators’ Association, said the cost of fuel as a percentage of total operating costs is significantly higher than the commuter industry in the long-distance, inter-city and tourism type operations, averaging about 30% of the total cost of the business.
“The impact of the latest diesel price increase is therefore about 4,7% of total operating costs. As with the commuter industry, this sector of the transport industry cannot absorb this magnitude of increase and will have to pass it on to its users,” said Cornelius.
Individual fuel retailers set their own diesel price and these can vary from R9,58 to R10 a litre in Gauteng.
Shopping around for diesel shows Pick n Pay-owned garages to be the best bet, charging the same or less than most other petrol stations. “Our research shows that we are always competitive. It may happen that diesel on promotion may be cheaper at another service station,” said Tamra Veley, spokesperson for Pick n Pay, which operates five service stations.
The taxi fare increases come in the wake of the third rise in the petrol price this year — a record-breaking 67c a litre.
Philip Taaibosch, secretary general for the South African National Taxi Council, said the increase in taxi fares was not a national decision and individual owners put up fares as prices rise.
“The whole industry is suffering because the price of not only petrol, but also tyres, vehicles and car parts are increasing. It is sad because the consumer is going to end up paying.”
The Greater Alberton Taxi Association increased its fares by R2 a ride last week. The association owner, Jose Jordaan, says this impacts heavily on the hundreds of commuters travelling from Alberton to Johannesburg.
“We had no choice to put the fares up because we had to bear the brunt of the increasing petrol price again this year. Last year February we had to put up our price by R1 a ride. In 2006 we put up our price by R1 and in 2005 by 50c.”
Working to pay for transport
“Transport costs are killing me,” said a commuter who travels via minibus taxis to work in Rosebank, Johannesburg, every day.
“I feel like I am working every day of my life just to pay for my transport and that of my children,” she said.
To travel from Chiawelo, Soweto, to the Bree rank in town costs her R8,50. The price increased by R1 a ride this week. Then she travels from town to Rosebank for an additional R6. This adds up to R29 a day to work and back, R145 a week and R580 a month.
It costs her an additional R370 and R420 a month for her daughter and son to travel to school and home.
In total she spends R1 370 on transport every month.
Private taxi companies, such as X-Metra taxis in Johannesburg, put up their fares and have been charging R8,50 instead of R7,20 since February. Negotiations are taking place for another possible increase in June.
A taxi driver for the company, Phundile Ramosha, said even though commuters are struggling to pay the increased price, business is functioning as normal.
“I don’t think we are going to lose big business now, because people are desperate and are therefore going to pay the extra fees to get around town.
“I think we are going to start losing business when the Gautrain is completed. People are going to have more options of what transport to make use of — especially when going to the airport or travelling to Pretoria.”