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DFT: It’s up to authorities and operators to cover high fuel costs and ‘INCENTIVISE’ taxi drivers

Updated: Mar 30, 2022

It is up to the licensing authority to pay with regards to rising fuel costs and ‘incentivise’ taxi drivers where needed to provide them with a sufficient income, said a DfT Minister.

The Department for Transport (DfT) also pointed in the direction of private hire operators as the ones who could help increase fares to in turn help their drivers pay the higher costs.

Dan Jarvis, Labour MP from Barnsley Central, asked the Secretary of State for Transport what assessment he has made of the impact of increased fuel prices on the viability of taxi businesses.

Trudy Harrison, DfT Minister, responded: “Private hire vehicle operators are able to set their own fares so fuel price increases can be considered. Licensing authorities are responsible for setting taxi fare tariffs, these should pay regard to the needs of the travelling public and what it is reasonable to expect people to pay, but also to the need to give taxi drivers the ability to earn a sufficient income and so incentivise them to provide a service when it is needed.

“My Rt Hon Friend the Chancellor of the Exchequer has just announced a temporary 12 month cut to duty on petrol and diesel of 5p per litre, representing a saving worth around £100 for the average car driver, £200 for the average van driver, and £1500 for the average haulier.”


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