Victorian taxi operator Royal Taxis has gone into administration, officials say. Source: AAP
LOW taxi fares and rising gas prices have been blamed for a third Victorian taxi operator going under in two years.
Royal Taxis, based in Melbourne's south east, has gone into administration in a move industry experts say affects about 75 taxis or up to 200 drivers.
Victorian Taxi Association CEO David Samuel blames rising LPG prices and unsustainably low taxi fares, which have not changed for about five years.
"The price the customer is expected to pay a taxi hasn't changed since 2008 which effectively means the industry is expected in 2014 to work at 2008 prices," he said.
"Clearly that's ridiculous and unsustainable."
Royal Taxis in Springvale is the second large Victorian taxi operator to go under in the past 12 months and the third in two years.
Mr Samuel says the industry has repeatedly warned the Victorian government about the effect low fares and high input costs are having on profit margins of taxi businesses.
Fares are 10 per cent lower than CPI and about a third behind comparable Australian states, he says.
Victoria's Essential Services Commission (ESC) is reviewing taxi fares and will announce a decision in June.
But Mr Samuel has called on Transport Minister Terry Mulder to act before then and increase fares in line with inflation.
Mr Mulder told reporters he has asked ESC to bring forward its decision on fares, hopefully to March.
The minister says he does not know the reasons for the latest closure, but customer service is not expected to be affected.
He added cab drivers who have lost their jobs would have no problem finding work because there is a driver shortage.
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