Taxi services in Lynchburg could soon go up by $1 per ride to help cab companies offset their gasoline costs.
Robert Williams, owner of Gray Top Cab Company, said rising gas costs have eaten into his company’s profits.
“It passes through your hands and goes to the gas pumps,” he said.
Williams and other taxi company owners have asked Lynchburg City Council, which regulates cab fares in the city, to authorize a $1 gas surcharge in addition to their current fares.
City Council today directed the city manager to draft the authorization for the surcharge for their consideration June 10. If adopted by council, the surcharge would be effective July 1.
Williams said he recently learned that the city of Roanoke has allowed a surcharge of $1 per trip since May 2006. He thought that would be a good way to address the problem of gas prices for local cab companies.
“We’ve been needing one,” he said.
Williams met with representatives of three other companies – Allied Cab, City Cab and Hill City Cab – in late April to discuss the idea.
Williams said the $1 surcharge, which would be added to all trips no matter what the distance, is actually cheaper than an actual rate increase would be.
“If you raise fares, it’s going to be more than a dollar, no matter where they go,” he said. “This is the best way to lighten the gas load for the company, but at the same time ... try to make it affordable to the passengers.
“You can’t over extend the prices either. You can’t make it to where they can’t afford to ride the taxi. But at the same time, we need relief.”
Roanoke’s ordinance allowing a surcharge gives the city manager power to cancel the surcharge if gas prices would fall below $2 per gallon for six months straight.
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