Posted on the 18th October 2026 in PHTM News

CORNISH TAXI FIRMS FACE CLOSURE THREAT AS SOARING FUEL AND OTHER COSTS BITE

Local taxi companies across Cornwall are warning that rising fuel costs and frozen fare rates are pushing their businesses to the brink of collapse.

Global oil supply disruptions have driven up pump prices, placing severe financial pressure on many firms across the UK. The crisis is hitting Cornish operators particularly hard as the region’s busy summer tourist season comes to a close.

The situation is made worse by local authority regulations, which have left the maximum fares that hackney carriage taxis can charge unchanged for the last four years.

While council-set tariffs have remained static, local government licensing fees, vehicle plates, and badge costs continue to increase. Drivers are also facing added expenses by being forced to travel long distances, such as from Penzance to council offices in Bodmin, simply to undergo required vehicle checks.

Rural operators are bearing the brunt of the downturn as seasonal tourist trade drops off sharply in October.

One North Cornwall firm, which relies on holidaymakers for 95 per cent of its trade during the five months from May to September, outlined the harsh reality facing drivers: “It’s massively affecting our business to the point that I don’t know how much longer we can carry on for.”

Highlighting the gap between costs and fares, the operator added: “The price people pay now is exactly the same as it was four years ago, but now you’ve got these ever-increasing costs to pay.”

To reduce fuel consumption, the business has resorted to inflating tyres to maximum legal limits and driving down pot-holed back lanes to take shorter routes, risking expensive vehicle damage.

Rising fuel prices are also inflating wider operating expenses across the supply chain, as items required for vehicle maintenance must be delivered by road.

A spokesperson for one of Cornwall’s largest taxi companies noted that essential products like AdBlue and oil are becoming increasingly expensive, calling it “a bit of a vicious circle.”

Criticising the lack of local support, the spokesperson noted: “There’s been no help from the council at all, because prices and tariffs remain the same,” leaving local drivers with no option but to “ride the storm whilst still endeavouring to provide the same safe and reliable service.”


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