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Posted on the 17th March 2026 in PHTM News

CABBIES FACE FINANCIAL CRISIS AS MIDDLE EAST CONFLICT DRIVES FUEL COSTS UP

Taxi and private hire drivers are facing a severe financial squeeze as fuel prices climb following the recent outbreak of conflict in the Middle East.

According to the RAC, average petrol prices have hit 139.64p a litre since the violence began, leaving many drivers struggling to stay profitable.

The National Private Hire and Taxi Association (NPHTA) warns that cabbies have taken "a huge hit" because they are legally unable to raise their prices on the spot. Because local authorities set the fares, drivers must wait through a lengthy bureaucratic process to adjust what they charge.

David Lawrie, director of the NPHTA, noted that it "could take up to six months" before fares change because the trade must present a business case to the council, followed by public consultations and committee meetings.

Ironically, the rising cost of petrol has actually led to more people calling for taxis. Lawrie explained that "when fuel prices go up, people are often far more likely to stop using their own cars and rely on the taxi industry instead."

However, this creates a difficult situation for the industry. While drivers are busier than ever, their overhead costs are eating into their earnings.

"They don't realise we need fuel as well," Lawrie added.

The price surge is largely due to the effective closure of the Strait of Hormuz, a vital shipping lane for 20% of the world’s oil, following US and Israeli strikes on Iran in late February.

Lawrie also expressed frustration with fuel retailers, stating that "forecourts are putting the prices up before they've had a delivery."

This means drivers are watching costs rise daily even on old stock, leaving them with "no choice" but to absorb the losses for the foreseeable future.

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