Taxi fares have to go up in Panama

 

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(primapanama.blogs.com) Panama is probably the cheapest place I have ever been to as far as taxi fares go. Of course there are the annoying stops to pick up other passengers going the same way and the loud music and usually substandard vehicles to deal with. Putting these inconveniences  aside, it is little wonder that with the high fuel prices, the taxi drivers are demanding a gas subsidy or the ability to raise fares. The government is saying no to both and the drivers are demonstrating. Something has to give!


La Prensa


Taxi drivers pledged to hold additional protests if they do not receive cheaper gas.


Voices of protest over the country’s high gas prices were heard throughout the provinces of Coclé, Herrera, Los Santos, Veraguas and Chiriqui, where taxi drivers demanded the government act on the problem.


Protest leaders promised to continue demonstrating, claiming that selective transport drivers have received state subsidies on fuel originally established for mass transit.


Nevertheless, the Autoridad de Tránsito y Transporte Terrestre (ATTT) has resolved to leave the situation as is.


Taxi drivers met this week with ATTT director general Heraclio Batista, who explained why the request for a subsidy was denied.


Rodrigo D 'Angelo, regional director of the ATTT of Chiriqui, said that if the agency granted separate subsidies to taxi drivers, it would have to suspend the gas subsidy, which would cause a price increase in this product. He said that the agency also would not authorize a fare increase, because riders can’t afford it.


D’Angelo said that alternatives are being sought to pacify the taxi drivers.


A group consisting of 150 drivers blocked entry into Colón for 30 minutes on Friday, warning that they would carry out a series of demonstrations including protests, picketing and street blockades if ATTT does not approve a 25-cent increase to the minimum rate charged to riders of taxis, which is 75 cents.


Victor Chiari, spokesman of selective groups of drivers, indicated that despite not having received a positive response from the authorities so far, it is left to each driver’s discretion to continue charging the current fee.


The upward trend in the price of a barrel of oil has been a concern of the government in recent months.


The situation does not seem to be getting any better as the price spiked by more than $10 Friday, which will almost certainly lead to higher prices at the pump.


Gas is already at all-time highs with many stations charging $4.20 a gallon or more for 91 octane.
 

Economists have not been able to pinpoint a reason for the price surge as demand has not caused any shortages so far.