Date: 2008-03-20
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Victoria’s independent economic regulator has recommended a small increase in taxi fares to offset the substantial rise in LPG costs, Minister for Public Transport Lynne Kosky announced today.
(Media-Newswire.com) - Victoria’s independent economic regulator has recommended a small increase in taxi fares to offset the substantial rise in LPG costs, Minister for Public Transport Lynne Kosky announced today.
The Essential Services Commission made the recommendation in an interim report on LPG prices as it continues a broader review of Victoria’s taxi industry.
Ms Kosky said the commission’s recommendation would maintain a sustainable and viable taxi industry in Victoria.
“Approximately 98 per cent of taxis in Victoria operate on LPG and the commission’s recommendation aims to offset higher LPG prices while maintaining the affordability of taxis for all Victorians,” Ms Kosky said.
The Multi Purpose Taxi Program subsidy cap will be raised by a corresponding 4.2 per cent from $1045 to $1090 per year.
“It is important to ensure those in the community who rely on taxi services for transportation can continue to do so,” Ms Kosky said.
The 4.2 per cent fare rise will add about 70 cents to the cost of an average metropolitan taxi trip, from $18.20 to $18.90.
“In regional Victoria where LPG prices and the number of dead kilometres travelled are higher than in metropolitan areas, country taxi services will benefit from the cost per kilometre rising from $1.577 to $1.64.”
New tariff stickers will be placed in Victorian taxis as the taximeter is adjusted to inform the public of the altered fare rates. The increase will be included on the meter displayed inside every taxi.
In January, Acting Minister for Public Transport Tim Pallas requested the Essential Services Commission review whether an interim fare increase was warranted following calls from the taxi industry that spikes in LPG prices were substantially increasing operating costs.
The ESC is conducting a broader review of taxi fare structures and is due to submit its final report by 30 June 2008.