TAXI fares could go up by 6% because of the rise in the cost of diesel. The Guernsey Taxi Owners’ Federation has applied to the Environment Department for the increase because members cannot absorb the extra costs.

Duty on petrol and diesel was set at 27p per litre by the States to combat its decision to abolish road tax from 31 December. Another 2p a litre duty was added in the recent Budget.

That means the cost of petrol, which following the Budget hike is already dutied at 15p per litre, will rise by about 14ppl.

And diesel, which currently has no duty at all, is set to rise by the full 29ppl.

Guernsey Taxi Owners’ Federation secretary Aaron Rabet said members had been reluctant to apply for an increase, but that needs must.

‘We did not want a meter increase, we wanted a tax subsidy, but neither the Treasury and Resources nor Environment Departments would support it,’ he said.

‘But ‘Environment minister’ David De Lisle said he was mindful of the fact that the fuel increase would impact on us and said he was willing to talk about it.’

Mr Rabet said a lot of research had been done and members had been canvassed for their estimated cost increase because of the fuel hike.

‘The view was that it will cost them up to £30 per week,’ he said.

‘With the rise in social security costs, the abolition of tax relief on personal loans and the rise in the cost of services generally, you can’t expect the working man to take it all – it’s bound to impact on the wider population.’

He said members were at the mercy of the Environment Department board when it came to meter increases and they had no right to appeal, but they wanted to work together.

The Environment Department was not available for comment at the time of going to press.