Taxi, bus companies look to fuel surcharges, rate hikes to stay on the road

Rising fuel prices have led Nova Scotia taxi and bus companies to add fuel surcharges or to plead for rate adjustments to keep their drivers on the road.

In Halifax, Casino Taxi has added a temporary $1.30 fuel surcharge for all trips.

Systems manager Jason George said the company worked with staff at the city bylaw department to ensure they were following the rules.

"This is a temporary charge to help compensate drivers who have been faced with an unprecedented rise in fuel costs over the past few weeks," George said Wednesday.

"Further, there has not been a taxi rate increase in Halifax since 2012, despite drivers' expenses increasing considerably, including insurance rates, vehicle purchase/repair costs, fuel etc."

Halifax city council sets the rates, he said, and he's heard municipal staff are going to make a recommendation to council for a temporary adjustment.

"If/when that is implemented, we will then remove the temporary fuel surcharge that we as a company have put in place. If the city council doesn't implement a fare increase, we will remove the fuel surcharge when fuel prices return to a more manageable level," he said.

Yarmouth firm struggling to stay on the road

In Yarmouth, Jonathan Watkins runs A2B Taxi. He said he wants Yarmouth town council to speak about a potential change to the rates.

"Until I get more information, I only can tell you my company is not able to sustain itself. As it stands, employees are making around $8 an hour on a rate set by the town of Yarmouth," he said Wednesday.

He compared that rate to the province's targeted minimum wage of $15 an hour by 2024. "The cab industry in Yarmouth needs a major change," he said.

His taxi drivers have acted as an unofficial medical courier through the pandemic, he said, transferring COVID swabs, flu vaccines and blood samples.

Watkins said he is in the third year of a five-year contract at the current fare rate. 

"I understand that I can stop doing this, it is my right, but if I stop them, no one will pick this up," he said.

"I have three cars going 12 hours a day trying to cover everything for them, but emergency calls that can come in at any time of the day — my company is responsible for [them] and I am not making enough money to pay my drivers."

Pam Mood, Yarmouth's mayor, said council met Thursday night and approved a $1 per passenger extra charge. Yarmouth is also considering increasing the base rate by a dollar, which she said four of the five local companies had requested. 

"Two increases. The second only takes effect when it goes through second reading and is advertised," she said.

Maritime Bus seeks flexible surcharge

Maritime Bus has also applied for a variable fuel surcharge, which would come through the Nova Scotia Utility and Review Board. 

"We propose that for the next 90 days that the boards grant us the ability to tie our fuel surcharge to the base rate on the day preceding the subsequent 14 days, i.e. pricing for March 13 to March 26 will be based on the base rate of March 12," the company's Ryan Cassidy wrote in their letter to the UARB.

"This proposal will allow us to better protect ourselves from rising costs, while at the same time allowing the fuel mechanism to reduce just as quickly to benefit our consumers."

He said they hope diesel prices lower and stabilize this year and they can revert to their current fuel surcharge. They want to have their new surcharge approved Friday so it can be added Sunday.

Cape Breton Regional Municipality recently voted in favour of a 30 per cent hike in rates for taxis, the first change since 2008.

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