Taxi fare review on the cards as costs spike

Syed Hamid said there was no possibility of removing the meter system since there were drivers who charged exorbitantly without it. — Picture by Choo Choy May

KUALA LUMPUR, Oct 21 — City taxi fares are being reviewed due to rising operating costs such as fuel and spare parts even as Putrajaya introduce free metro bus services and the multi-billion ringgit My Rapid Transit (MRT) to ensure affordable travel for those living in the Klang Valley, says industry regulator Land Public Transport Commission (SPAD).

SPAD chairman Tan Sri Syed Hamid Albar said the increasing costs, namely the price of petrol, natural gas and spare parts were "way out", adding that taxi drivers have a compelling case for higher fares. Putrajaya recently gave RM520 in vouchers for a set of tires for the estimated 80,000 taxis across the country.

Despite that, some 300 taxi drivers protested in the nation's capital city two weeks ago against getting traffic summonses and a fledgling free bus service around Kuala Lumpur's main shopping district of Bukit Bintang.

"I think we need to seriously address this issue, and I think the public is matured enough now. They don't mind to pay more provided the service is good," Syed Hamid told The Malaysian Insider in an interview.

The former Cabinet Minister added that there was a need to recognise rising costs by allowing a flexible pricing mechanism.

The flag down rate is RM3.00 for budget taxis for the first two kilometres and passengers are charged 10 sen for every subsequent 115 metres of the journey in the Klang Valley. An extra RM1.00 is charged for each passenger beyond two and baggage stored in the boot.

"The price of petrol when I started to drive was only RM0.50 or RM0.60, and when I started work it was only RM1.00. Now, it's ridiculous but that's the real market situation.

"So how do they deal with this? That one, they have a strong case. That is also the reason for them to not want to use the meter," he said, adding that he had no quarrel with reviewing the taxi rates which was last updated in 2009.

However, Syed Hamid said there was no possibility of removing the meter system since there were  drivers who charged exorbitantly without it.

"I think we need to have all these things seen, otherwise if we want to enforce them not to use the meter... my 18-year-old son had to pay RM150 for going from Ampang, Taman TAR to the Curve.

"We also recently arrested a taxi driver who charged foreign tourists from Concorde Hotel near the Kuala Lumpur City Centre (KLCC) to somewhere for RM420,"  said the Kota Tinggi MP.

Last month, 300 taxi drivers from the newly-formed Bestari group protested on Jalan Bukit Bintang, the premium shopping district here, demanding the commission to address issues that affected their livelihood.

One of the issues was the introduction of the Go-KL free bus service for two routes from Bukit Bintang to KLCC and the Central Market area in the city's heritage zone.

Responding to the issue, Syed Hamid told reporters yesterday that many taxi drivers felt victimised by the move, but said SPAD’s responsibility was to ensure good service.

“They should not be angry with the free Go-KL bus service, which only involved two routes. I am confident if the taxi service is satisfactory, passengers including tourists, will opt for taxis,” he added.

There are some 40,000 taxis registered for service in Kuala Lumpur and Selangor, which the authorities say is too many for the area.