Buses, taxis the next to feel fuel pinch

Bus and taxi passengers may soon be paying more for a ride as operators look to pass on higher fuel costs.
The Bay's largest taxi company is warning of a 20 cent/km price hike in fares within the next six weeks - bringing the rate up to $3/km. The city's public buses, the Bay Hopper, may be forced to raise fares as Environment BOP reviews the cost of the service next month. Both say the increases are due to rising fuel costs.
Tauranga Mount Taxis board member and driver of six years Roman Saily told the Bay of Plenty Times the industry was struggling to cope with the continual rises in petrol prices. Eventually these would have to be passed on to consumers.
Prices had increased from $2.40 to $2.80/km (plus the $1.95 flag fall cost) around the Bay over the past year, largely due to fuel costs, Mr Saily said.
"We can guarantee a minimum of six weeks at the current rate, after that we will review petrol prices and see what needs to be done," he said. The minimum increase would be 20 cents, he added.
"It is hurting but we know people are struggling so we are trying to keep our prices as low as possible."
Mr Saily said the taxi industry was looking at alternative ways to cut back on petrol, including buying hybrid cars or switching to LPG. "But this is only for cars," he said. "When it comes to vans, which are needed to transport people with disabilities, there are no alternatives to diesel."
Bayline buses managing director Tony Lugg said the fuel bill got bigger each month, with the price of diesel going up 51 per cent over the past six months.
"It's a big concern," he said.
Mr Lugg expected a lot of Tauranga motorists would be hurting as 91 petrol passed the $2 mark on Thursday evening and he predicted a rise in passenger numbers on the Bay Hopper, which is operated by Bayline.
"They will just use their car less, which will help us. In the next week when they start filling up their cars I think they will be hurting."
"Fuel [diesel] is a big cost for us but if more people use the buses then that can help offset the cost and keep bus fares down."
Currently, around 3000 people a day use the Bay Hopper service on the 12 routes around Tauranga and Mount Maunganui.
All but two of the routes now run on 30-minute cycles and individual bus fares have not risen over the past seven years.
In response to the Government's Budget, Mr Lugg said: "I think the Government could have made it easier for us too by reducing the tax on fuel."
Environment BOP transport policy manager Garry Maloney said fuel costs pushed up the cost of the service and that could ultimately be paid for by higher bus fares.
"It [fuel prices] will have an impact in terms of inflation adjustment with the bus contract," he said.
Citing an 8 per cent inflation rise over the past nine months, Mr Maloney said the regional council would be assessing the contract at the end of June to find ways to pay for the increased costs.
"One of the options we have to reduce the costs is to increase the fares," he said.
The three options to manage the rising costs are the extra cost falling on local ratepayers and Land Transport NZ, increase the bus fares, or a combination of both.