business

June 24, 2022

NEO SENOKO

2 min read

30 percent taxi fares increase finally here

30 percent taxi fares increase finally here

Story highlights

  • Commuters pay M12 for a 10km taxi ride
  • Cabs charge M12.50 for the same distance

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FRIDAY will finally see the much anticipated 30 percent taxi fare increase, a sigh of relief to hundreds of taxi operators who are feeling the pinch of industry regulation by government.

The new fares structure will see commuters pay M12 for a taxi ride for a distance of up to 10 kilometers, up from the current M8.50 for the same distance. Those using the 4+1 taxis (cabs) will have to pay M12.50, up from the current M9.

The Ministry of Transport on Tuesday confirmed the imminent surge in transport fares and said the new price list was available to the public.

It said following the announcement of transport fares increase on May 24, the ministry wished to inform the public that the new transport fares would be effective from Friday, June 24.

The fares hike come on the back of the continual increase in the global prices of fuel due to the ongoing war between Russia and Ukraine.

Road Transport Board chairperson, Limema Phohlo previously said research indicated that local economists had argued the 30 percent increase was a fair rate and justified in line with the ongoing economic conditions.

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“We have resolved to increase fares due to the ongoing tough economic conditions that include increasing food commodities as well as increases in petrol prices in order to allow the industry to keep growing and sustain the current situation,” Phohlo had then said during a media briefing.

For commuters, it means the cost of living which was already high, is getting even higher and likely to worsen the shocking high inequality in income distribution in Lesotho.

Last week, government responded to a long time outcry from both motorists and the business community by putting aside M30 million a month for the next six months as subsidy to petroleum products.

Government decided to maintain prices of petroleum products at fixed prices effective from July to December in an effort to mitigate the impact of high fuel prices.

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