JEDDAH: A number of taxi companies are considering raising fares as a result of the government's decision to raise fuel prices.

The government move will affect the transport sector which will raise its charges, an industry source said.

The Cabinet on Monday approved increases in the pump prices of gasoline as well as electricity and water rates, the first of a series of "comprehensive economic, fiscal, and structural reforms" recommended by the Ministry of Finance.

The new prices of petrol are Octane-91 at 75 halalas per liter, up from the current 45. Octane-95 will increase to 90 halalas a liter from the current 60, a Cabinet announcement carried by the Saudi Press Agency said.

"Everyone knows that the low prices of taxi services were a result of low fuel prices. But the situation has changed now after the recent decision. Most taxi companies are studying the new energy prices to ascertain whether there is a need to raise their prices or not," Abdullah Salmeen, the owner of a taxi services company told Arab News.

"It is hard to keep the current low taxi fares despite the high prices of energy. I roam the streets of Jeddah all day. I will try to ask customers to pay more than in the past and I will observe the reaction of the people if they agree to pay a higher fare. If they reject these prices, I will deal with the current prices and continue working," a Pakistani taxi diver told Arab News.

Most prices of taxi companies do not exceed SR30 to provide transportation services inside Jeddah. At the same time, people are used to paying between SR10 and SR20 to make short trips. However, the new fuel prices worry them.

"I have no private car or special driver to go to work. I hail a taxi every day. I pay SR20 to go and come back from my work. But the new prices may force taxis to raise fares this week," teacher Salma Ahmed told Arab News.

"The transportation sector in general may raise prices by up to 15 percent as result of the new fuel prices. However, the situation of taxi companies is different and they would hate to lose customers," Saeed Al-Bassami, a member of transportation committee at Jeddah Chamber for Commerce and Industry, said.