WITH taxis set to become increasingly more expensive due to rocketing fuel prices it begs the question, where will it all end?
As our page-two story today reveals, a second fare hike within a year is now on its way.
And judging by the noises coming out of the oil markets, the meter is still ticking on further increases.
Environment’s decision to allow the Guernsey Taxi Owners’ Federation to increase fares by an average 4.84% is the latest blow in an increasing line of such fuel-related swipes at consumers.
While it is the first RPI-related increase in a year, this extra cost follows a 6p per mile fare rise introduced at the start of 2008 - a drive designed to help meet extra duty charges.
Prices are simply becoming more and more prohibitive.
And with the latest crude oil prices at close of play last night up by 97 cents to $140.97 per barrel for August delivery, the rise looks set to continue.
Analysts are predicting the trend to carry on throughout the year - with some suggesting a price of $200 dollars by the end of the year as not inconceivable.
While some will greet the taxi fare rise with disbelief, others may sympathise. It’s also worth bearing in mind our story last week which revealed how five drivers were selling their plates, claiming the fuel hike was driving them out of business.
Long term, the situation is worrying both for consumers and the trade itself.
So is it time for the OUR to step in?
The regulator exists to ensure competition in the market or, where there is none, to challenge price setting accordingly.
Although it has impact in telecoms and electricity, there is none in gas or fuel, where the mark-up is said to be among the highest in the world.
While no one is suggesting that anyone is ripping anyone off, in the end it is always islanders who pay.
What the OUR’s involvement would do is bring a clear focus on costs and efficiency whereas the current ‘regulation’ merely looks at operators’ costs.
As prices seem set to get even higher, passengers need to know they are getting a fair fare.
Fuel for thought
WITH taxis set to become increasingly more expensive due to rocketing fuel prices it begs the question, where will it all end?
As our page-two story today reveals, a second fare hike within a year is now on its way.
And judging by the noises coming out of the oil markets, the meter is still ticking on further increases.
Environment’s decision to allow the Guernsey Taxi Owners’ Federation to increase fares by an average 4.84% is the latest blow in an increasing line of such fuel-related swipes at consumers.
While it is the first RPI-related increase in a year, this extra cost follows a 6p per mile fare rise introduced at the start of 2008 - a drive designed to help meet extra duty charges.
Prices are simply becoming more and more prohibitive.
And with the latest crude oil prices at close of play last night up by 97 cents to $140.97 per barrel for August delivery, the rise looks set to continue.
Analysts are predicting the trend to carry on throughout the year - with some suggesting a price of $200 dollars by the end of the year as not inconceivable.
While some will greet the taxi fare rise with disbelief, others may sympathise. It’s also worth bearing in mind our story last week which revealed how five drivers were selling their plates, claiming the fuel hike was driving them out of business.
Long term, the situation is worrying both for consumers and the trade itself.
So is it time for the OUR to step in?
The regulator exists to ensure competition in the market or, where there is none, to challenge price setting accordingly.
Although it has impact in telecoms and electricity, there is none in gas or fuel, where the mark-up is said to be among the highest in the world.
While no one is suggesting that anyone is ripping anyone off, in the end it is always islanders who pay.
What the OUR’s involvement would do is bring a clear focus on costs and efficiency whereas the current ‘regulation’ merely looks at operators’ costs.
As prices seem set to get even higher, passengers need to know they are getting a fair fare.
Article posted on 3rd July, 2008 - 2.23pm