The National Taxi Alliance (NTA) has threatened to take government to court should the industry’s demands for a reprieve from fuel levies and car financing are not met.
The association says the recent hikes in fuel costs are crippling the industry and it is forced to pass on the costs to customers.
Early this month, steep increases in the fuel price saw South Africans having to dig deeper in their pockets in an already strained economy.
Both 93 and 95 petrol increased by R1.46 a litre, diesel by R1.48 per litre and illuminating paraffin by R1.28 a litre.
NTA spokesperson Theo Malele says: “It is a serious blow because it has shrunk our bottom line and it is getting very serious on a daily basis, so we need to do something about it. We will take them to court because we have noticed that even with other organisations, every time government steps out of line, the only realignment will be the litigious process.”
Another predicted petrol price increase
Meanwhile, the Automobile Association (AA) is predicting the price of petrol to increase to R24 a litre, and diesel to R 23.60 a litre in April.
The organisation says the main driver behind the increases is the movement in international oil prices which have soared to record levels in recent weeks due to the conflict in Ukraine and concerns over Russian oil supplies.
The Motor Industry Staff Association, a registered trade union for employees in the retail motor industry, has since requested that government include it when reviewing the fuel pricing methodology in South Africa.
The organisation says it is concerned about the increasing price of petrol and wants clarity.
Lumkile Mondi from the Wits University School of Economics and Finance speaks to SABC News about SA’s rising fuel prices: