Taxi firms 'blown out of the water' by fuel costs hike prices

Tuesday, 26 July 2022

Rising costs are seeing taxi drivers fight for survival despite business rebounding after the pandemic. (File photo).

A Wellington taxi firm is adding a $1 surcharge to every fare to help soften the blow of rising fuel costs for its drivers.

Chris Finlayson, of Wellington Combined Taxis, has been driving for about eight years. His fuel bill has increased by over 40% in recent months, he said.

“It used to cost me $115 to $120 to fill up. It now cost me $160 t0 $170 – and I drive a hybrid. The guys that drive exclusively petrol or diesel are blown out of the water with their costs,” Finlayson said.

Drivers had “done it hard” over the past two years, he said, with some barely coming out on top after their bills and expenses.

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While petrol prices have dipped recently, the Automobile Association isn’t expecting it to go further down. (File photo)

“The price of fuel is going through the roof and they’re really getting nothing back. To get $40 extra on a fuel bill, it really hurts.”

Wellington Combined Taxis Chairman Dave Clyma and general manager Bahman Fakharzadeh. (File photo).

Wellington Combined Taxis chairman Dave Clyma said the surcharge was a temporary step to give his drivers “some relief”.

“The surcharge is just enough to meet the extra cost of the fuel to date. [It] will remain in place until prices return to where they were at the beginning of the year.”

It enabled his drivers to implement the measure more quickly and without the expense of adjusting their meter systems, Clyma said. It also made it easier to reverse the fee should conditions change for the better.

Recent price hikes at the pump are as a result of extremely high refinery and crude costs off the back of the pandemic and Ukrainian war.

Although prices dipped recently when the Government continued fuel tax relief and questioned fuel companies’ “historically high” profit margins, the Automobile Association wasn’t expecting it to go down further.

Ride-sharing company Uber introduced a temporary fuel surcharge on all trips in New Zealand earlier this year.

Clyma said business for is company was rebounding to pre-Covid-19 levels and he was grateful for the customers who made the decision to use their local firm and Zoomy app.

“We rely on the public’s good will for our success so we tend to hold off to try and get the fairest deal for our customers, but we also have to ensure that our drivers survive,” he said.

Corporate Cabs chief executive Cameron Allison said his company, which operates around the country, had not introduced a similar surcharge for passengers.