Prepare to pay 12 per cent more for taxi fares Tuesday. Rising fuel costs are the reason, said a report prepared by by Bryan Gutjahr, manager of by-law enforcement for Greater Sudbury.
City council passed a recommendation Wednesday from the Chief Taxi Inspector to amend the Taxi, Limousine and Shuttle Transportation By-Law to include the increase effective July 1, 2008.
The taxicab industry has not had an increase in the taxi tariffs since August 2006. Then they were given a four per cent increase, said Gutjahr.
Since December 2007, gasoline prices have increased approximately 35 per cent.
“This represents a significant operating cost increase for the taxi industry. Current fuel prices are at an unprecedented high and it doesn't appear that the prices will decrease to what they were in late 2007," stated the report.
"The increase in fuel impacts on the daily expenses of taxi owners and the recommended fare increase will allow the industry to offset the increase in fuel prices."
This is supported by a recent Unites States government report quoted by CBC Radio One indicating that oil prices are expected to remain above $100 (U.S.) a barrel until 2030.
The report, released Wednesday, stated oil could even jump to $190 a barrel from its current $136 a barrel. High demand and tight supplies are keeping pricing forecasts high for the near future.
Gasoline is retailing near $1.40 a litre with diesel edging upwards towards $1.50 this week.
Recently Ward 1 Coun. Joe Cimino said he had received a call from a cab driver who was forced to visit the soup kitchen to make ends meet.
What does this mean to the consumer?
Currently the drop rate for the first 226 metres is $3.00. That will increase to $3.25. Thereafter, for each 133 metres the cost now is .25 cents. The new rate will be .25 cents for 119 metres. For example a five km trip which costs $11.97 will cost $13.40 as of Tuesday.
Other cities are also reacting to fuel increases. Ottawa hiked fares by 10 percent June 1, 2008, Toronto fares increase by 11.5 per cent July 1 and Thunder Bay is proposing a 14 per cent jump September 1, 2008. For a five kilometre trip passengers in Ottawa pay $11.61, $11.61 in Toronto and $13.40 in Thunder Bay.
