Fuel price hike adds to pressure on taxi and PSV drivers

Taxi drivers and public service vehicle (PSV) operators on Monday warned that the latest fuel price hike will deepen financial pressures across the transport industry, as higher pump prices take effect just weeks after the busy Christmas period.

The adjustments took effect from midnight on Sunday. Many drivers said the increases would further squeeze an industry already burdened by high operating costs and stagnant fares.

Petrol rose by three cents to $3.88 per litre, while diesel went up by nine cents to $3.41 per litre. At the same time, kerosene has fallen by eight cents to $1.48 per litre. Prices for liquefied petroleum gas (LPG) now stand at $164.14 for a 100 lb cylinder, $46.13 for a 25 lb cylinder, $40.76 for a 22 lb cylinder, and $37.06 for a 20 lb cylinder. The next fuel price adjustment is scheduled for February 1.

For operators who rely daily on petrol and diesel, even what appears to be a small increase adds up.

Sitting along a busy route in Bridgetown, taxi operator Enson Bowen summed up a sense of resignation shared by many on the road. “I don’t study it no more,” he said. “You study it, the price could still be there. You don’t study, same thing. So it don’t make sense. You just draw a line in the middle.”

He noted that for years there has been talk about subsidies to ease the burden on operators but said there is still no clarity. “I know for some years now there’s been some discussion around introducing a subsidy… I think that’s still on the table, but to tell you the truth, I don’t know.”

Taxi driver Kenneth Durant, also known as “Kenny G”, described mixed feelings about the increase. “Three cents increase is still an increase,” he said. “But what are we gonna do? We just got to go with the flow.”

He noted that taxes remain a major concern. “Basically what we are doing is paying at the pump, and they’re taxes at the pump… road tax and that kind of stuff. So we just got to make it do.”

Others were more direct about the financial impact. Veteran taxi driver Wayne Padmore, who has been operating for over 15 years, said the increase is cutting into already tight margins. “It’s affecting us because fuel gone up and the taxi fees still at the same price,” he explained. “So the income that we would normally get, that would affect the income that we would have.”

Padmore also pointed to rising costs beyond fuel. “The prices of parts are expensive, especially for commercial vehicles,” he said, adding that while a fuel increase may have been reasonable two years ago, current conditions make it much harder to adjust.

Despite the challenges, Padmore said the Christmas and early winter season brought some relief. “The Christmas season was good. There had a lot of cruise ships and a lot of people… so far we have seen an increase in people coming to Barbados.”

From a wider sector perspective, chairman of the Alliance Owners of Public Transport (AOPT), Roy Raphael, warned that the increases will have “a great impact” on public service vehicle operations.

“We are one sector that moves 80 per cent of the travelling public,” he said, noting that PSV buses operate far more frequently than Transport Board units. “Our public service vehicles now, the smaller units, putting as much as $175 a day in diesel, while the bigger unit can put between $200 and $350 a day in diesel.”

Raphael said country routes are likely to be hit hardest, as vehicles must travel longer distances to meet demand. He added that while there has been a slight increase in passengers recently, it is not enough to offset rising fuel, maintenance and insurance costs.

Insurance was highlighted as a major concern, with some 1 200 public service vehicles operating on the road. “The cheapest insurance for one of the PSVs is from $10 000 and the most expensive you can get up to $25 000,” he said. “That’s at least $1 200 per seat per year.”

Raphael called on insurance companies to engage more transparently with operators and justify continued increases, while also creating incentives to reduce accidents and reward good driving behaviour.

Looking ahead, he revealed that discussions are under way with the Ministry of Energy about transitioning to electric vehicles. “We’re hoping that by early 2027, at least 25 per cent of our units will be electric vehicles,” he said.

He also confirmed plans for a buyers’ club to be started to help AOPT members source vehicle parts and oil at more reasonable rates, particularly as many parts are imported from Japan or Trinidad and remain costly or difficult to obtain.