OBSERVER ONLINE understands that over 1,200 taxi operators have exited the formal transport sector due to the steep increase in fuel prices since January.

According to Egeton Newman, president of the Transport Operators Development Sustainable Services (TODSS), the continuing rise in the cost of fuel has taken a heavy toll on taxi operators who were already operating under tight profit margins before the steep price increases. It is theorised that some of these transport operators could be operating informally as ‘robot’ taxis.

“I made a notation that 1,200 taxi operators between late last year to June have given up their red plates because of the high fuel prices,” Newman disclosed.

“All these guys have exchanged their red plates for white plates and are operating in external transport groups where white plates are optional, or they are running robot taxis. It is impossible for a man to take off their red plates and go home and sit down,” Newman added.

Some checks by industry insiders have speculated that the real figure may be as high as 3,000 taxi operators who have fled the formal transport sector across several regional taxi operator organisations.

Fuel price has gone up by more than 50 dollars per litre since January.

Octane 87 prices have increased over 17 times and decreased 7 times for a net increase of $50.89, while Octane 90 prices have increased by a total of $50.46. Diesel prices have increased by a net total of $58.02 while ULSD prices have jumped by $55.14.

Newman said his members are desperately awaiting the start of the $600 million incentive scheme announced by Finance Minister Dr Nigel Clarke during his budget presentation.

READ: $600m to cushion rising fuel prices for taxi operators — Clarke

The plan includes a $25,000 voucher for taxi operators and a revolving loan fund.