Taxi association disappointed over return to normal fare from September 30

The Fiji Taxi Association is calling on the Fijian Competition and Consumer Commission (FCCC) to suspend its decision to end the interim fare adjustment on September 30 and instead retain the current $1.40 per kilometre distance rate until a permanent, evidence-based fare review is completed.

Association president Mohammed Faiyaz said forcing operators back to the $1 per kilometre rate introduced in 2011 ignored the realities of today's operating costs.

"The question for FCCC is very simple: how can a taxi fare set in 2011 possibly remain fair, reasonable or economically viable in 2026?" Mr Faiyaz said.

He said the distance rate had remained unchanged since 2011, despite rising costs across the industry.

"Returning to 10 cents per 100 metres means returning operators to a permanent distance rate that is fifteen years old."

"How can a distance rate effectively set fifteen years ago possibly reflect the cost of operating a taxi today?"

Association demands immediate action

The Fiji Taxi Association calls upon FCCC to:

1. Immediately suspend its decision to return the distance rate to $1.00 per kilometre on 1 October.
2. Retain the current rate of $1.40 per kilometre until a comprehensive cost-of-service review is completed and a permanent fare is determined.
3. Undertake that review urgently, taking account of fuel, tyres, parts, maintenance, labour, insurance, depreciation, financing, vehicle replacement, empty return journeys and waiting time.
4. Publish the methodology, evidence and timeframe for the permanent fare determination.
5. Reimburse operators for any second meter recalibration required as a result of FCCC’s temporary arrangement.
6. Consult directly and meaningfully with the Fiji Taxi Association before making any further decision.
7. Work with LTA and other authorities to take effective action against illegal operators who continue to take business from licensed operators without carrying the same regulatory and financial obligations.

Industry says costs have surged

The association argued that fuel was only one of many expenses faced by operators.

It said tyres, batteries, vehicle servicing, spare parts, insurance, financing, labour and replacement vehicles had all become significantly more expensive over the past 15 years.

Mr Faiyaz said the recent fall in fuel prices did not justify reverting to a fare structure introduced in 2011.

"The recent fall in fuel prices has not transported Fiji's economy back to 2011. Tyre prices have not returned to 2011 levels. Parts, servicing, labour, insurance and vehicle prices have not returned to 2011 levels. The cost of feeding a family has certainly not returned to 2011 levels. Why, then, should taxi fares return to a 2011 distance rate?"

He said taxi operators were earning less in real terms despite carrying out the same amount of work.

"The $300 that a taxi earned from a given amount of work in 2011 is still the same $300 today because the distance fare has remained unchanged."

"Taxi operators and drivers are therefore earning substantially less in real terms than they did in 2011, despite performing the same work."

Meter recalibration criticised

The association also criticised FCCC's temporary fare arrangement, saying operators were forced to recalibrate their taxi meters when the interim increase was introduced in July and would now have to pay again to restore the previous rate.

According to the association, operators paid about $50 to recalibrate each meter and many waited up to a month because of limited authorised service providers.

The association questioned who would compensate operators for the additional expense and lost working hours.

"Who will reimburse the operators for these unnecessary costs? Who will compensate them for the working hours lost while waiting in queues? FCCC created this administrative and financial burden. It cannot simply send the bill to taxi owners who are already struggling to survive."

Legal action being considered

The association said it was consulting lawyers on its legal options, including possible court action over the decision and the financial losses it claims operators will suffer.

It is also consulting members on lawful forms of collective and industrial action should FCCC refuse to reconsider its position.

"Legal or industrial action is not our first preference, but operators cannot be compelled indefinitely to provide an essential service at rates that do not allow them to earn a decent living," Mr Faiyaz said.

He said the industry had waited 15 years for a permanent review of taxi fares.

"The taxi industry has been patient for fifteen years. That patience must not be mistaken for consent."

"FCCC must reverse this decision and commence an urgent permanent fare review. A 2011 distance rate has no place in Fiji in 2026."