Taxi drivers' union to seek fuel surcharge

The National Taxi Drivers' Union (NTDU) will write to the taxi regulator later today to request a 50 cent fuel surcharge to taxi fares to compensate for the rising cost of petrol and diesel.

NTDU president Tommy Gorman told ireland.comtoday that although a similar request for a surcharge was rejected last year, the case for the surcharge was now compelling in light of recent increases in oil prices.

Crude oil prices reached a new record high of more than $72 today.

Mr Gorman said the 50 cent surcharge could be introduced quite quickly and the taxi regulator Ger Deering could remove it if prices fell significantly.

Mr Gorman said taxi drivers were looking at a extra €50 per week in fuel costs as a result of recent oil price rises. He said fuel costs for taxi drivers had risen between €1,500 and €2,500 annually over the last two years.

Last month, Mr Deering published a review of taxi fares nationally and this will come into force on September 25 ^th. Previously Mr Deering has said that a 50 cent surcharge would be out of proportion for shorter taxi journeys.

Goodbody Stockbrokers also warned today that higher oil prices are likely to hit motorists, with a litre of petrol rising to €1.20.

Economist Dermot O'Leary said the increases in the prices of oil and gasoline  were nearly at the same level as September 2005 when oil prices spiked. He said the price of a litre of unleaded petrol hit €1.17 then, predicting prices could rise to €1.20  a litre  this time. "It is not actually one thing causing the rise. The current rise in caused by tensions in Iran, which is the fourth biggest producer of oil," he said.