No reason to hike maxi fares

Finance Minister Colm Imbert on Friday chastised maxi-taxi operators, whom he suggested had disproportionately raised their fares in light of the post-budget increase in fuel—especially those who operate vehicles that use compressed natural gas (CNG).

“It is counter-intuitive for the price of CNG to be subsidised; for the price of CNG maxi taxis to be subsidised; no increase in the price of CNG; but maxi taxi fares gone up in taxis powered by CNG. Counter-intuitive,” he said in his closing arguments to the Finance Bill in Parliament Friday evening.

He said while he understood that a driver with a diesel-powered maxi-taxi would be justified in increasing fares—proportionately— if their costs had increased, it didn’t justify a fare increase of 300 per cent, “that sort of thing.”

In the budget, read by Imbert on October 2, he announced a reduction in the fuel subsidy to diesel and gasoline, resulting in a new diesel price of $3.41 per litre, from $2.30; and a super price of $3.97 from $3.58. CNG, by contrast, costs $1 per litre.

Later that month, maxi-taxi operators along the Route 5 (brown-band maxis) raised their fares by one dollar. Last week, Route 2 operators (red-band maxis), similarly raised their prices.

“I would like to ask everyone, especially public transportation providers, especially maxi-taxi owners, to switch to CNG as soon as you can. The cost of that fuel is a fraction of the cost of gasoline and diesel,” Imbert said.

Imbert also clarified that the Government would not be affecting incentives for CNG or hybrid-powered vehicles. He said it was an “administrative glitch” in the provisional collection of taxes order, so he wanted to be “crystal clear” that the motor vehicle tax exemption for commercial vehicles was going to remain intact regardless of engine size. The change would apply only to passenger vehicle, and that he would speak more about it during the amendment to that respective bill.