The conflict in Iran has led to a surge in fuel prices, causing hardship for many UK motorists. This increase is particularly challenging for individuals like Clare Johnson, a licensed cab driver in Swansea, who estimates she is now spending an additional £50 weekly on fuel. However, due to regulations, taxi drivers such as Clare cannot raise their prices independently and must adhere to council-set tariffs.
Unlike traditional taxi drivers who operate under regulated meters, private hire services like Uber have the flexibility to adjust prices based on demand. Clare emphasized the struggle faced by taxi drivers, noting the significant impact on families and individuals reliant on these services.
Recent data from the RAC shows that diesel prices have risen by 35% and petrol prices by 19% since the conflict began on February 28. The closure of the Strait of Hormuz has caused a sharp increase in oil prices, affecting global fuel costs.
Despite a temporary drop in crude oil prices, the reduction has not yet translated to lower pump prices. The Licensed Private Hire Car Association is scheduled to meet with the Department for Transport to discuss potential support for taxi drivers amid the escalating fuel costs.
The Government has acknowledged the challenges faced by taxi and private hire vehicle drivers and extended the 5p fuel duty cut to mitigate the impact until September. They are actively monitoring the situation to help alleviate costs for motorists.