Van, Taxi operators call for fuel subsidy as prices rise

Drivers of taxis and omnibuses in St. Vincent have called attention to economic hardship caused by increased gasoline and diesel prices recently.

The two major forms of petroleum are up significantly, so many are calling on the Government of St. Vincent to subsidize the cost of gasoline and diesel, thereby enabling them to continue operating without placing a greater burden on consumers using their services.

On July 25th last week, the Government of St. Vincent advised that the price of gasoline will be raised from its current level of $13.22 per gallon to approximately $18.82 per gallon. This increase was primarily caused by rising world crude oil prices.

Nevertheless, the Government has established a ceiling (or maximum allowable) price for gasoline at $16.92 per gallon; representing a total absorption by the State of approximately $3.60 per gallon ($2.70 difference + $0.90 subsidy).

Unlike the general populace, which may limit its travel to save money, taxi and bus drivers cannot stop driving because they do not receive a salary while traveling. Taxi and omnibus drivers must continuously refuel.

The increase in the price of gasoline/diesel, unlike some increases which were only 20 cents or one dollar, is an increase of approximately three dollars for each type of fuel, which will make it very difficult for taxi/omnibus drivers to pay their operational expenses.

Moreover, taxi drivers indicate that providing good service to their customers (i.e., keeping the air conditioning running) burns additional fuel and cuts further into their dwindling profit margin.

However, taxi/omnibus drivers are presently prohibited from charging more than they currently charge. Fares for all vehicles are controlled by the Transport Board and therefore are identical throughout the country.

In light of these increasing costs, taxi/omnibus drivers indicate that instead of requesting permission to raise the fare charged to the public, they are asking the Government for targeted subsidies to assist in keeping the transportation industry viable.

They point out that public transportation has been operated privately for decades by individuals who operate at their own risk and expense, and that there is no public funded transportation system in operation nor does the State provide any form of assistance to this vital public service.

St. Vincent Times