Operators announce taxi fare increases

RETHABILE MOHONO

MASERU – The Lesotho Road Transport Board on Wednesday this week declared that taxi fares would increase by 1 Loti from 1 December.  The board Chairperson, Limema Phoohlo, explained during the press briefing that the price increase was initially intended to take effect this month, but was delayed “in order to allow commuters sufficient time to familiarise themselves with the prices.”

“However, due to urgent matters related to economic deflation and its impact on the industry, it was ultimately decided that the new prices would come into effect on 1 December,” he said. In contrast, the board secretary, Mathabo Tšosane, said there was consensus to raise taxi fares annually in order to incrementally raise them by smaller amounts of money. However, the actual implementation took longer than expected.

The decision to increase taxi fares has been met with criticism from both commuters and taxi drivers who argue that the increase is unfair, especially given the current struggles of the industry and the overall depressed economy. Last week, taxi drivers claimed that the owners’ demand for higher fares was solely motivated by self-interest and lacked any consideration for the welfare of Basotho people, who are already burdened by the high taxi fares.

Currently, the cost of 4+1 is M12, implying that individuals who work five days a week need M480 for transportation. However, from December onwards, with a 1 Loti increase, the same individual will need to allocate M520 for transportation. With this increase, taxi drivers last week expressed concern regarding the surge in demand, which is likely to exacerbate their already existing pressure. Moreover, taxi owners are anticipating higher profits from the drivers, who are struggling to meet their expectations.

“Many of us work in unpleasant circumstances without any signed agreements, leaving us vulnerable to losing our employment if we fail to meet the owners’ demands in the event of an unaffordable fare raise,” one taxi driver told this publication, emphasizing that the proposed surge in fares is primarily intended to serve the interests and prosperity of their employers, rather than the general public at large.

Taxi drivers further complained that the taxi business is currently not doing well, as most people opt to walk to cut down on the high standard of living. “The cost of sustenance, accommodation, energy, and power has surged, causing a significant number of individuals, particularly those employed in factories and other low income earners, to suffer.  “These individuals, who form the backbone of our customer base, endure daily hardships and often struggle to make ends meet. Given their already limited financial resources, it would be unwise to further burden them with price hikes at this time,” added another taxi driver who refused to be identified.

Conversely, Mokete Jonase, the head of the Lesotho Taxi Operators Association, has made it known that they have formally pleaded with the board of public transport to raise fares, with the expectation that the new rates will take effect at the start of this month. “Consensus was reached on a 10 percent increase, with the anticipation of the revised prices coming into effect this November. Regrettably, the dates have been deferred until the 22nd of November,” he added, further emphasizing their dwindling patience with the long-awaited price increase.

Jonas emphasized that they anticipate the new prices to take effect by the start of December at the latest, adding that any delay until January would cause them inconvenience and is not an option they can consider.

In June 2022, there was a significant surge of 30 percent in taxi fares which was a direct consequence of the escalating fuel prices within the country, coupled with the detrimental impact of the inadequate infrastructure on the vehicles. It became an utmost necessity to avert the imminent collapse of the transportation industry, thus prompting a collaborative effort between taxi operators, commuters, and the government to implement a local price hike.

The new fare structure saw public transport users paying M12 for a ride of up to 10 kilometres.  However, it appears that the majority of the populace is concerned with the suggested increase in prices, lamenting that their interests are not being taken into account and that the authorities are not taking any action to alleviate their distress.

Amidst the anguish of the public who endure the burden of numerous job losses and the soaring costs of poultry and potatoes, more people have expressed concern over the proposed increase. “Most restaurants are closed due to lack of chicken and expensive potatoes. Look retailers are also closing, this means we have a problem and the government needs to do something out of it,” said Keletso Matete, one of the street vendors.

Following the confirmation of the increase this week, the public’s reaction has been mixed.  While some believe that the increase is justified given the escalating fuel prices, others argue that it comes at an inopportune time, considering the economic hardships faced not only by Lesotho but the entire global economy. They point out that the country has just emerged from the COVID-19 pandemic and is also dealing with the consequences of the Ukraine-Russia war, which has led to a surge in food and fuel prices.