The nation’s about 90,000 registered taxis would be eligible for a gasoline subsidy of NT$6,000 (US$190) to help them cope with the increase in fuel costs caused by the conflict in the Middle East, the Executive Yuan said yesterday.
The subsidy for taxis, which are considered part of the public transportation system, is one of three new measures to further mitigate the impact of rising oil prices, Premier Cho Jung-tai (卓榮泰) said at a Cabinet meeting yesterday.
Starting on May 20, registered taxi drivers would be eligible to apply for the gasoline subsidy, the Ministry of Transportation and Communications told a news conference after the meeting.
Photo: CNA
Those offering taxi services using electric vehicles would not be eligible, it said.
The subsidy could help cover the costs of 1,200 liters of gasoline, with a discount of NT$5 per liter, the ministry said.
Applications would end on Aug. 31, the ministry said, adding that taxi drivers could continue using the subsidy until the end of this year.
To use the subsidy, taxi drivers would first need to apply for taxi gasoline discount cards issued by CPC Taiwan, Corp and get gas from stations run by the state-run firm, it said.
Minister of Transportation and Communications Chen Shih-kai (陳世凱) said that NT$540 million in funding for the subsidy would come from the budget allocated to boost the use of public transportation, adding that the Executive Yuan would consider different sources if more subsidies are needed.
Subsidies would not be available until May 20, as CPC Taiwan, Corp would need to prepare for the discount cards and train staff, Chen said.
National Federation of Automobile Transport Drivers’ Unions of the Republic of China chairman Cheng Li-chia (鄭力嘉) said that the price of 95 unleaded gasoline has risen from NT$28.7 per liter to NT$33.9, an 18 percent increase.
“We hope the ministry would regularly review gas prices and provide more subsidies,” Cheng said.
Taipei Taxi Drivers’ Union spokesperson Well Lee (李威爾) said that a full-time taxi driver travels 220km to 250km per day, meaning the subsidy could cover fuel costs for 60 to 70 days.
“As a taxi driver, I would say the more subsidies the better. The subsidy this time will only slightly cover the revenue shortfall from the past two months. When the conflict in the Middle East would end remains uncertain, and oil prices could continue to rise,” Lee said.
The subsidy would produce positive effects, Taiwan Association of Ride-Hailing Platform Operators secretary-general Tseng Hong-yi (曾弘義) said.
There has been no significant impact on ride-hailing demand or drivers’ income since the outbreak of the Middle East conflict, Tseng said.
“Even though the war could end soon, oil prices are expected to remain high for some time after the war, and the impact on the transportation industry and drivers could last until the end of this year,” Tseng said.
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