SA Taxi owner, Transaction Capital, has published its financial results for the year ending March 2022, outlining the amount of money the taxi industry is spending annually to buy fuel.
The group’s data reveals that minibus taxis use 2 to 3 billion litres of fuel per year.
Transaction Capital said the taxi industry spent R40 billion on buying fuel in the 2022 financial year.
South Africa’s petrol price breached R20 per litre in December 2021.
The fuel price hike in April 2022 resulted in the highest fuel price to date at R21.609 per litre. Petrol prices are expected to remain volatile in the coming months, driven by the Russia-Ukraine war.
The minibus taxi industry remains indispensable to South Africa’s economic productivity, with most South Africans relying on public transport
It is the largest and most vital service in the country’s integrated public transport network. More commuters choose minibus taxis over bus and rail services due to convenience and accessibility.
Spending on minibus taxi transport is largely non-discretionary, making the industry defensive in tough economic conditions.
Transaction Capital noted that with the industry’s profitability under strain, taxi operators
are under pressure to afford their finance instalments and insurance premiums.
Although minibus taxi fares have increased by approximately 9.3%10 per year between 2013 and 2020, no fare increases were levied over the COVID-19 period for humanitarian reasons.
“The industry is assessing the medium-term impacts of these industry challenges and is expected to announce further fare increases imminently,” said Transaction Capital.
“In this context, SA Taxi’s fully refurbished Quality Renewed Taxis (QRTs) provide an affordable yet reliable alternative to buying a new vehicle.”