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The Honolulu Advertiser
Posted on: Thursday, June 5, 2008

Council OKs fuel surcharge for cab drivers

By Peter Boylan
Advertiser Staff Writer

To help taxi cab drivers cope with surging fuel costs, the City Council yesterday authorized a fuel surcharge, the first taxi rate increase since 2005.

The bill, approved by a 9-0 votes, states that every six months the city will "determine whether a fuel surcharge should be established based on any increase in the base amount and the average fuel prices."

The city sets the maximum taxi cab rates and taxi operators decide what to charge passengers.

Current taxi rates are based on fuel prices of between $2 and $2.50 per gallon that date to the 2004 consumer price index.

The surcharge will be based on the 2006 consumer price index, a little over $3 per gallon.

"I think how it is regulated now, it keeps poor people poor," said taxi driver Romeo Mitran, speaking before the council yesterday. "I am working 12 hours a day and I cannot afford health insurance. I am turning to you and asking you to do something."

Warren Kobatake, who also drives a taxi cab, said he supports the surcharge but said it does not keep pace with rising fuel costs.

"Anything is better than nothing," said Kobatake. "The rate increase is supposed to get us back to where we were in 2005. Now that the price of gas is past $4, we didn't get an increase (that helps)."

Reach Peter Boylan at pboylan@honoluluadvertiser.com.