B.C. gas prices pushing taxi industry to ask for fare increase
Posted March 8, 2022 7:23 am.
Last Updated March 8, 2022 9:28 pm.
The taxi industry in B.C. is asking for permission to increase fares to deal with the high cost of gas in the province, especially in Metro Vancouver.
The industry has been absorbing the extra costs in recent days, since gas hit record-breaking highs, hurting the bottom line for cab companies and drivers alike.
BC Taxi Association President Mohan Kang says the cab industry is appealing to the Passenger Transportation Board for some sort of intervention.
He wants the board, which regulates taxi fares provincially, to allow a temporary surcharge to offset the extra expense of fuel.
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“The taxi industry is regulated by the PT Board…and we cannot charge a penny more than what is granted to us,” Kang said.
He says the last time they asked to increase fares was in July 2008.
“That time the price of the gas [was] $1.35 when we requested,” he said, adding, “3.5 cents was granted to us on the metre.”
He says taxis serve a vital role in connecting people in the community and worries what long term impact these prices will have if something isn’t done to protect the bottom lines.
Kang says many drivers have to pay a portion of their fuel.
Board to comment in ‘coming weeks’
The Passenger Transportation Board says a review is ahead of the board which could see a change to rates.
The board conducts a Taxi & Limousine Cost Index (TLCI) review annually to identify rate increases for taxis.
“The TLCI rate increases are based on the Consumer Price Index for BC and attempt to strike a balance between the interests of transportation operators and the consumers they serve. The 2022 TLCI review is currently underway and the Board should be in a position to comment further in the coming weeks,” a spokesperson told CityNews.
Carshare companies not increasing fees
Carshare companies like Evo are still evaluating how gas prices are hitting their bottom line and are not imposing any kind of surcharge or extra fees to cover extra fuel costs yet.
Evo’s Dave Wharf says they’re still doing the calculations and looking ahead.
“We have no immediate plans to raise our prices. Obviously, it’s been a dramatic increase over the past week. We saw it start to go up at the beginning of the week but if you told me it was going to be up to $2.099 I wouldn’t have believed you,” Wharf said.
“We want to do everything in our power not to put this back on members,” he said.
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Wharf says the rising cost of gas may encourage consumers to take carshare options.
“These gas prices are continuing to go up, cost of insurance, parking, that sort of thing, not to mention all the other costs that people have in their daily lives. And they start to think ‘maybe I don’t need two cars, or maybe I don’t need one car, and I can look at other ways of getting around,'” he said.
Carshare service Modo says it’s also evaluating the effect of gas prices and has no comment at this point.
With files from Crystal Laderas and Lasia Kretzel.
