SAINT JOHN - Local cab drivers are feeling the pinch from rising gas prices, but so far are holding off on increasing fares in the city.

Enlarge Photo Peter Walsh/Telegraph-JournalUniversity Taxi’s Kenny Khanes said he and fellow owners recognize that a large number of clients are on low or fixed incomes so it is difficult for them to handle price increases. There is a lot of talk going on amongst the drivers, but it is difficult for them to get together since they have to work 12 to 14 hours a day to make a living, said Ahmed (Kenny) Khanes, owner of University Cab.

Gerry Lowe, owner of Vets Taxi, is also hearing talk but says owners are reluctant to increase fares in the summer because people will look for alternatives.

Although gas prices have been rising, taxi use was up over the winter because the weather was bad, so now they are holding off on any price increase, said Lowe.

The majority of cabs in the city are privately owned, so Lowe believes it will take pressure from those owners before prices rise.

"There is no big push, even from among my private owners to do anything, definitely because of the summer," he said.

Khanes said the owners recognize that a large number of clients are on low or fixed incomes so it is difficult for them to handle price increases.

Prices in Saint John are not regulated, but are based on an agreement among the taxi drivers. The last time prices increased was in the summer of 2005 when it was agreed to increase the basic fare for the shortest trips from $5 to $6. Trips costing between $10 to $20 were increased by $2 and those over $30 were increased by $3.

Khanes said one thing the provincial government could do to keep taxi fares from rising is to give drivers some relief on insurance.

"Over the past two years the insurance companies have raised prices on taxis, only taxis," he said.

Cab drivers in Montreal pay $100 per month per car, but in New Brunswick the price is between $250 and $350 per month, he said.

"It's ridiculous," he said.

The government could help by legislating lower prices in New Brunswick or by allowing the drivers to shop around and buy their insurance from out of province providers, he said.

http://telegraphjournal.canadaeast.com/city/article/344824