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Many business owners are growing increasingly concerned that they may have to shut their doors if fuel prices continue to rise unchecked.
Jacqui Shephard, director of Crown Cabs, expressed that her fleet of 35 drivers operating across Victoria is facing significant challenges.
Shephard highlighted that the taxi company is already grappling with the surge in popularity of rideshare apps and the competition from independent drivers who bypass regulations.
“We bear the burden of fuel costs, and if these expenses climb any higher, remaining operational may no longer be viable,” she explained.
Shephard emphasized that Crown Cabs’ regular clientele, especially in regional areas, depend heavily on their services for wheelchair-accessible transportation and getting to medical appointments.
Often, drivers are heading back to town with no passengers.
These “empty” rides still use up fuel and after diesel surged to over $3.20 a litre, that is potentially hundreds of dollars wasted.
“Our costs have gone up considerably,” Shephard added.
“It’s really tough. And there doesn’t seem to be any reaction or any support from the state or federal government.”
Some taxi drivers have reported seeing their weekly diesel bill double from around $400 to over $800.
But taxi companies are not able to pass on the cost of fuel to customers due to the industry’s tight regulations.
There is legislation capping the maximum fares that taxis can charge in Victoria, meaning surcharges to cope with the cost of fuel are out of the question.
Even if they could, Shephard said her customers are “already struggling enough” as it is.
“We want to be there to help those people. We’re not going to be raising our prices ridiculously – and we can’t,” she said.
Shephard said there has been a rise of independent drivers who refuse to play by the rules too.
“We have to abide by everything,” Shephard said.
“And you’ve got all the idependents who are just rogue cowboys who take work away from those doing the right thing and give the industry a bad name.”
For companies like Crown Cabs, it remains to be seen if the federal government’s decision to halve the fuel excise for three months will help lower costs.
The government convened in a national cabinet meeting yesterday to urgently discuss ways to ease the supply issues and high prices impacting motorists.
Fuel availability is dwindling around the country as stock is depleted.
In Victoria alone, out of a total of 1,627 petrol stations, 82 are without diesel and 40 are without any petrol at all.
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