The surge in fuel prices could push taxi drivers into bankruptcy, according to data from London insolvency firm Company Debt.
Despite falling wholesale costs, fuel at the pump went up to 189.84p on Wednesday, while diesel reached 198p a litre, one step closer to approaching the £2 a litre mark.
Company Debt reported that that drivers could spend £6,000 more in 2022 due to fuel, in addition to costs of running a taxi going up between 20 and 25 per cent.
“Local authorities are implementing new criteria such as electric vehicles or CCTV, and this is going to have a financial impact on the industry as a whole,” said David Lawrie, director of the National Private Hire & Taxi Association.
“In fact, many operators are struggling to get drivers. A lot of private operators do not want to put their prices up to keep their clients, but on the other hand, many drivers are struggling to make a wage.
“As a result, many go away from driving careers to feed their family.”