Clare Johnson cannot put up her prices without agreement from her local council, so she is being forced to swallow the increase in fuel costs
The war in Iran has sent the price of fuel soaring – causing misery for millions of UK drivers.
The pain is particular acute for people who rely on their cars for work, such as taxi drivers. Clare Johnson, a licensed cab driver from Swansea, estimates she is spending an extra £50 on fuel every week.
But she cannot put up her prices without agreement from her local council, which means many taxi drivers like Clare are being forced to swallow the increase.
Traditional taxi drivers generally do not set their own prices, as they use meters which are regulated by councils or licensing authorities.
Private hire vehicles like Uber operate differently, setting their own prices, which can fluctuate based on demand.
Clare said: “We can’t put up our prices to be able to get some of that money back because our tariffs are set by the council.
“We cannot charge more than what the council allows us to charge without having a consultation to increase it – and that takes months.
“It’s not something that’s likely to be implemented soon. In the meantime, we’ve just got to suck up the increase.
“Everyone’s struggling – we’re talking about people who’ve got families with young children and mortgages. It’s not just taxi drivers but just people in general.”
Average pump prices at UK forecourts increased again on Monday to reach 191.5p per litre for diesel and 158.3p per litre for petrol, according to the RAC.
This marks an increase of 35% for diesel and 19% for petrol since the day the war began on February 28.
Fuel prices have risen due to a sharp rise in the cost of oil, due to the closure of the Strait of Hormuz. About 20% of the world’s oil passes through the strait.
Brent crude fell in price last week, but jumped back above $100 a barrel on Monday after Middle East peace talks collapsed and Donald Trump vowed to blockade the Strait of Hormuz.
Clare added: “When this war broke out, the increase in fuel was immediate, now the price of crude oil dropped quite a bit… but we don’t see an immediate impact of that reduction on the petrol pump.
“The majority of the people that have to use taxis have mobility issues, so they do depend on us.”
Licensed Private Hire Car Association (LPHCA) is due to meet with the Department for Transport (DfT) this Wednesday to discuss what help can be made available to taxi drivers.
It comes after Basildon Council revealed it is set to introduce Taxi Fuel Support Grants amid rising pump price costs.
In a letter to Lilian Greenwood, Parliamentary Under Secretary of State at the DfT, LPHCA chairman Steve Wright Wright MBE said: “As an organisation, we recognise the likelihood of fuel rationing and to this end we ask the government to consider the vital role the trade plays in keeping the country moving, in particular with regard to the aforementioned.
“Secondly, for those of our members who are running Hackney fleets, they do not have, unlike private hire, the ability to temporarily cover excessively increased fuel costs as generally tariffs are set by lengthy local authority protocols.
“We therefore hope that any emergency powers include appropriate rationing for both trades and the ability to make small temporary surcharges above any metered or contracted rates.”
A Government spokesperson said: “We recognise the impact rising fuel costs are having on taxi and private hire vehicle drivers, and we are meeting with the Licensed Private Hire Car Association to further understand the impact of the conflict on the sector.
“We’ve extended the 5p fuel duty cut twice until September and will continue to monitor the situation as we work to keep costs down for motorists.”
