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Taxi fares look set to rise again after drivers told the States they are "struggling to cope" with increases in fuel costs.
On 17 January, the maximum fare went up by 3.34%. The next increase was not planned until the start of 2023. But proposals were announced this morning to allow drivers to put up the maximum fare by another 5.35%, possibly as soon as next month.
The States said that drivers of diesel cars have faced additional costs of 23p for every £1 of fuel purchased in the last nine months alone.
The proposed increase was drawn up by the Committee for the Environment & Infrastructure after it held talks with the Taxi Owners' Federation and the Policy & Resources Committee. It is now out to consultation and inviting comments from the public. Responses can be submitted until Thursday 14 April.
Pictured: Leon Gallienne is the President of the Taxi Owners' Federation, which the States said today was "struggling to cope with very significant increases in fuel costs".
The Committees said: "following two very challenging years because of the covid pandemic, taxi operators are now being especially impacted by fuel costs, but unlike many other sectors regulations mean they are not able to freely adjust their prices to reflect changes to their running costs.
"The January increase in the maximum fare (based, in part, on quarter two 2021 motoring costs) does not reflect how much fuel costs rose in the past nine months, where the cost of diesel fuel has gone up by 23%. It is to reflect this extraordinary rise that the Committee is proposing to further increase the maximum tariff now.
"Taxi fare increases are calculated using the established ‘Halcrow Formula’, and that same formula has been used to determine the level of this interim increase of 5.35%."
The proposed increase is separate from a wholesale review which is currently being undertaken into how taxis are licensed and what they are allowed to charge. That review is being carried out by a specialist transport agency reporting to the Committee for the Environment & Infrastructure.
The Committee said it will "consider those findings when the review has finished to determine what other, longer-term changes should be taken forward".
Views on the proposed increase of 5.35% can be emailed by clicking on this link: mailto:passengertransport@gov.gg or sent in writing to: The Director of Traffic and Highway Services, Bulwer Avenue Office, Bulwer Avenue, St Sampson’s, GY2 4LR.
Taxi fares set to increase in January
Review of taxi fares and licensing
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