Gas is the most common requirement for taxi drivers, and it’s a common fact. Apart from the vehicle’s maintenance costs, it is the gas price that the driver has to invest in at a regular frequency, which can also add up to the daily expenses. Now, the drivers are stuck with bad news. Gas prices have gone up to a mark of 3$ per gallon. This has been the most significant hike in recent times after the considerable margin rise in 2014.
The main reason behind such a price hike can be explained in the context of the war between Russia and Ukraine. The West’s sanctions on Russia have caused this hike since Russia is indeed a significant supplier of crude oil. On Tuesday, President Joe Biden also announced that the country would stop importing crude oil from Russia. Great Britain followed this. Patrick De Haan, petroleum analyst, Gas Buddy, stated that the situation wouldn’t improve soon and would stay in the air for months. The scenario is more aggressive, leaving taxi drivers disappointed. America saw the most enormous inflation on Tuesday, which is $4.775 per gallon. California holds the record of having the largest gas price, which was $5.44 per month. Still, the Rio valley prices stay below the national average and have been soothing for the drivers. But situations can change at any time.
November 2020 saw gas prices at the rate of 1.75$ per gallon. The following 12 months showed an increase of 70% of the cost, which itself is a drastic change. This has also caused the drivers to rage against the government since the rule can subsequently decrease their profit and bring down an enormous burden on them. As the reason for the significant surge, Salvador Contreas, Associate Professor, UTRGV, said that this hike was approved by the government since the revenue obtained from the fuel tax helps build the transportation status. In short, they are trying to build up the revenue to improve the transportation infrastructure.
The gas tax statement in Texas also plays a significant role here. Unless the other countries, gas has a tax of 20 cents per gallon in addition to the 18 percent tax put forward by the government. Contreras has been highly successful in giving a possible explanation of the same, but that doesn’t form a solution. The whole tax model can bring down the taxi sector. The deadliest fact lies in his following statement. He believes that this hike is wholly based on the federal government’s interest, and therefore we will get to see a much larger hike in the subsequent months.
The gas prices also depend on the location in which they are located and on the size of the station. If the gas station is located in a busy city with lots of vehicles using it, they will charge you more. It will not be the case with countrysides where there are fewer vehicles. Seems those taxi drivers now have to go to such gas stations to save their revenue.