Taxi in Sur (Ji-Elle)
Private taxi drivers in Oman have reportedly begun hiking fares by up to 30 per cent to compensate for fuel prices increases.
The increases come following the government’s decision to reduce fuel subsidies at the beginning of last year as part of austerity measures to tackle its oil-linked budget deficit.
Times of Oman reports that the rise of fuel prices this month to the highest levels since the end of the subsidy prompted taxi drivers to pass on the expense to passengers.
“We have increased fares since late last year. It had to be done else there is no profit,” said a group of seven drivers at the Ruwi taxi station were quoted as saying.
They said a ride from Ruwi taxi station to Seeb would have cost about OMR0.700 but would now be up to OMR1.
Fuel prices are said to have risen by more than 50 per cent since subsidies were lifted.
The government does not regulate private taxis in the sultanate and rates are decided between the driver and passenger.
Taxi drivers in the country complain of a substantial drop in profits following the introduction of the Mwasalat public bus service.