Taxi drivers have expressed concern at the news that fuel prices will rise by five cents a litre from the beginning of April.

Finance Minister Bob Richards announced yesterday in his budget speech that the tax hike is expected to raise about $9.6 million in extra revenue for Government.

But drivers fear that after a recent drop in the price of gas, the latest cost cutting measures announced by Government could have a significant impact on their livelihoods.

Leopold Kuchler, past president of the Bermuda Taxi Operators Association, said the five cent a litre hike could really hurt taxi drivers.

He said: “It’s no surprise to know that taxi drivers have the highest fuel consumption on the roads, so this could really hurt us.

“We are already paying 45 per cent duty on fuel at the pumps.

“If this is another five cent a litre on top of that, then it is pretty significant.

“We understand that everyone has to contribute to get rid of this debt and I guess we will have to accept it.

“But it’s still tough for taxi drivers and this is not good news.”

Taxi driver Leo Simmons added: “Raising the price now is another charge that affects our bottom line in an industry where we rely on others to make our livelihoods.

“A lot of guys are working 16 to 18 hour days just to make a decent living, and in the off season some are working for as little as $8 an hour.

“We have seen concessions given to grocery stores and the retail sector, but the taxi industry has not received any concessions. The last rate increase was ten months ago now.”

Taxi drivers and consumers saw significant benefits from the collapse in world oil prices late in 2014.

In December, premium fuel cost almost nine per cent less at the pump than it did a month earlier, according to the Consumer Price Index.

Veteran taxi driver Lee Tucker said “At the moment it is not exactly clear how this increase will work out for us.

“We recently saw the price of petrol go down, which was very welcome.

“However if this latest hike takes us back to somewhere worse than where we were before then it is not good news for taxi drivers at all.

“It remains to be seen just how significant this could be to taxi drivers in Bermuda.”