Santaco assured commuters that any fare increases implemented by associations would be approached with caution, transparency, and responsibility.
Image: Jeffrey Abrahams
South Africa's minibus taxi industry is set to experience financial challenges as fuel prices rise sharply, with operators warning of potential impacts on commuters.
The South African National Taxi Council (Santaco) said it noted the recent fuel price adjustments that come into effect at midnight on April 1, 2026. However, the organisation indicated that the petrol price rise of over R3 per litre and the R7 for diesel, which was used by most taxis, would impact the industry.
“The significant increase of over R7 per litre means the industry will continue to absorb the greatest impact of the current fuel price adjustments,” Santaco National Spokesperson Mmatshikhidi Rebecca Phala said, highlighting the disproportionate pressure on diesel-reliant operators.
Although the government has introduced a R3 fuel levy relief measure, Santaco described it as only a temporary buffer against a broader cost surge.
“Santaco acknowledges and welcomes the R3 fuel levy relief as a necessary short-term intervention,” Phala said, adding that the relief does little to offset the overall increase in operational costs.
The taxi industry, which transports millions of South Africans daily, operates in a largely deregulated fare environment, meaning individual taxi associations determine pricing. Santaco said these associations are now reviewing their cost structures and profit margins before deciding on any fare adjustments.
“Taxi associations across the country are currently assessing the impact of these increases on their operational costs and profit margins. Based on these assessments, associations will communicate directly with their commuters regarding any potential fare adjustments,” Phala said.
Crucially, the organisation sought to reassure commuters that any increases would not be implemented hastily.
“Santaco wishes to assure the public that any fare increases implemented by associations will be approached with caution, transparency, and responsibility,” Phala said, signalling awareness of the already strained household budgets many passengers face.
IOL reported earlier in the week that the latest fuel hike was among the steepest in recent months, reflecting a combination of global oil price volatility and a weaker rand.
Economists have warned that rising fuel costs tend to ripple across the broader economy, pushing up food prices, transport costs, and inflation.
For the taxi industry, the impact is immediate and difficult to absorb. Unlike larger transport operators, many taxi owners operate on thin margins, making them particularly vulnerable to sudden input cost increases.
Santaco said it was continuing engagements with the government to explore further interventions aimed at cushioning both operators and commuters.
“These engagements are critical to ensuring that the burden of rising costs does not disproportionately affect those who rely on public transport daily,” Phala said.
The organisation also appealed for patience from commuters as the industry navigated the latest price shock
“Santaco calls for understanding and cooperation from commuters during this challenging period, as the industry works to balance sustainability with affordability.”