Taxi Driver Online

Evening News (Norwich)

June 17, 2008 Tuesday

Taxi bosses in Norwich have today warned they might have to hike up fares if the price of petrol continues to rocket.

The price of a litre of diesel in the UK has risen about 25pc in the last three months from under £1 to about £1.25 a litre.

And the city's taxi firms said today it was costing individual drivers up to £30 a week extra to fill up, meaning they could be faced with little other option than to increase the cost to passengers.

Mark Streeter, owner of Courtesy Taxis in Norwich, said: "The price of diesel is now sky-high and it's costing drivers an extra £20 to £30 a week too fill up. We have not yet put up our prices but I know other firms have.

"As per the problem filling up with diesel, we're not having any problems. It's only panic buying that could have an effect on us, and that has not happened in Norwich."

While private hire firms can put up their fares at any time, Hackney carriage bosses must apply to do so through the council.

And Steve Rush, chairman of the Norwich Hackney Carriage Trade Association, said: "As far as diesel prices go, it's having quite a bad effect on traders.

"But we're struggling on and maintaining our prices. But if fares do continue to go up then obviously they will have to consider putting up current fares."

To make matters worse for drivers this weekend's Shell tanker drivers' strike saw many forecourts run out of petrol completely. However, in Norwich no major supply problems were reported.

Talks are now on going to try and avoid a second strike.

Oil prices have risen about 40pc this year, as soaring demand from emerging economies looking to power their growth has been exacerbated by supply fears and speculation on the world markets.

The average price of diesel shot up 6.76 pence per litre last month to 124.17 pence per litre, while the average price of petrol has risen to 112.55p per litre from 108.06p.

Michael Howes, controller of Beeline Taxis in Prince of Wales Road, said: "There's no problem getting fuel - it's just the price. Our drivers have to pay an extra £20-£25 a week because of the rise in fuel. But we have not put up our prices yet."

Concerned about the knock-on effect on businesses, the British Chambers of Commerce has called on the government to abandon plans to increase petrol duty by 2p per litre in October.
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