Business

Rising fuel costs driving taxi firms out of business

Back in the early part of 2011, Richard James, of Ledbury Taxi Service, told the Ledbury reporter of the difficulties he had been facing due to the price increases. He said: “I hope I can keep going because I’ve been doing this in Ledbury for 26 years. Business is still good for me and I do a lot of miles. Though you do find yourself working some serious hours and ending up with nowhere near what you used to earn. A lot more money is going in the fuel tank. It’s a struggle and people don’t realise what it does actually cost to do this job.”

If you are a taxi driver facing similar problems, you could look at cutting costs elsewhere. One other essential area where savings might be made is insurance. To get the best protection and a good deal you should look out for an insurance company with years of experience in the field. Specialist insurers often better understand the risks associated with running a taxi business and as such can better tailor a product to suit your needs.

According to the latest figures, fuel sales fell dramatically in 2011, with volumes for the first nine months of the year just tipping 13.9 billion litres – a fall of over one billion. In 2012, consumption is expected to continue to decline as motorists cut down on journeys or ditch the car altogether. One group that simply doesn’t have the choice of cutting back on fuel spending is taxi drivers, who increasingly find themselves battered by the fuel hikes and thus trying hard to stay afloat.

Looking at the efficiency of your vehicle may also reap rewards. Simple measures such as servicing your car regularly and keeping your tyres pumped to the correct pressure can ensure you minimise your fuel consumption and keep costs down as much as possible.