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🇹🇼 Taiwan /Economy & Trade

Taiwan Boosts Taxi Fuel Subsidies to $15,000 Amid Oil Price Hikes; Other Sectors Protest

From Liberty Times · () Chinese

Translated from Chinese, summarized and contextualized by DistantNews.

At a glance

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  • Taiwan's Ministry of Transportation has increased subsidies for taxi fuel costs in response to rising international oil prices, raising the subsidy from NT$6,000 to NT$15,000 per vehicle.
  • The increased subsidy, which aims to help taxi drivers cope with higher fuel expenses until December 31, 2026, is expected to cost approximately NT$1.3 billion.
  • While the subsidy is intended to assist taxi drivers, other transportation sectors like tour buses and freight trucks have expressed dissatisfaction, questioning why only taxis are receiving preferential treatment.

Taiwan's Ministry of Transportation has announced a significant increase in its fuel subsidy program for taxi drivers, raising the maximum subsidy per vehicle from NT$6,000 to NT$15,000. This measure is a direct response to the recent surge in international oil prices, attributed to geopolitical tensions in the Middle East. The enhanced subsidy will be available to taxi operators until December 31, 2026, providing some relief amid rising operational costs.

If drivers want to adjust fares, we can help communicate with local governments.

— Chen Shih-kaiResponding to calls for fare adjustments and offering ministry support for communication with local authorities.

The total estimated cost for this expanded subsidy program is approximately NT$1.3 billion. The subsidy mechanism remains unchanged, offering a discount of NT$5 per liter of fuel. This move by the Ministry of Transportation aims to cushion the impact of fluctuating fuel prices on taxi drivers, a sector that relies heavily on affordable fuel to maintain its services.

However, the decision has not been met with universal approval. The National Alliance of Automobile Drivers' Rights has voiced concerns, pointing out that while the subsidy benefits some professional drivers, it has sparked backlash from other sectors, including tour bus operators, freight truck companies, and rental car businesses. These groups are questioning the rationale behind prioritizing taxis and are calling for a more comprehensive review of transportation pricing and subsidies across the board.

The taxi fuel subsidy was originally NT$6,000 per vehicle. The Ministry of Transportation has announced an additional NT$9,000, bringing the total subsidy to a maximum of NT$15,000.

— Liberty TimesDetailing the increase in the taxi fuel subsidy program.

Minister of Transportation Chen Shih-kai acknowledged the calls for adjustments in transportation fares, particularly concerning local rates. He stated that fare adjustments fall under the jurisdiction of local governments. Chen assured that the Ministry of Transportation would provide necessary assistance if taxi unions or associations wish to engage in discussions with local authorities regarding fare revisions. He also indicated that the ministry is in ongoing communication with the Executive Yuan regarding overall budget allocations for various subsidy programs, including those for the aviation industry.

The Ministry of Transportation's approach certainly helps some professional drivers, but it also causes backlash from other industries. For example, tour bus, freight truck, and rental operators are all reacting negatively, asking why taxis are singled out for preferential treatment.

— National Alliance of Automobile Drivers' RightsExpressing concerns about the fairness of the subsidy program and its impact on other transportation sectors.
DistantNews Editorial

Originally published by Liberty Times in Chinese. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.

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