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Bus hire firms ‘handing work back’ as fuel price crisis continues

Kevin Mayne of Maynes Coaches in Buckie Moray. Picture by Les Parker.
Kevin Mayne of Maynes Coaches in Buckie Moray. Picture by Les Parker.

Bus and taxi firms have claimed soaring fuel prices are causing them to turn down work.

Rainbow City Taxis in Aberdeen and Maynes Coaches in Buckie are just two businesses that have been impacted by the increase in fuel costs.

Transport firms are being particularly badly hit, as many long-term contracts were agreed before prices began to rocket – leaving them out of pocket.

Fuel prices in Aberdeen neared £2 a litre last week as the worldwide supply issues have sent prices soaring.

‘All we can do is pass it along to customers’

Kevin Mayne is the operations director of the Mayne’s Coaches, which offers a number of services, including tourist coach tours around Scotland.

He said: “You will be taking in around 450-550 liters for an average full-size coach. So at £2 per litre, you would be around £1,000 for one tank.

“All we can do is pass it along to our customers.”

Firms dropping the work as ‘can’t afford to do it’

But Mr Mayne admitted this is not always possible, as rates may have already been arranged.

“There is a huge issue where coach operators have been put into long-term contracts and now have found themselves where the coach operators have been handing work back.

“Which is surreal because two years ago, there was no work.

“They are physically dropping the work because they can’t afford to do it. So it is affecting all sorts in the Scottish tourism industry.

“I believe yesterday one tour group arrived in Scotland without a coach to do their seven-day tour, and is now running about with six-seater taxis and a luggage van.

Petrol and diesel prices at the Shell Petrol Station along King Street in Aberdeen. Picture by Kenny Elrick.

‘Drivers lose the most’

Taxis have also been under pressure. Last month, it was revealed that drivers in Aberdeen are paying for the seventh most expensive fuel in Scotland.

Rainbow City Taxis is one of the largest taxi firms in the city and its managing director Russell McLeod said: “Drivers are now paying £20-30 extra every time they go to the pumps.

“The drivers are the ones who put fuel in the car. They are fueling up at least three times a week. That is a lot of money.

“And they are losing out the most, it has had a major impact on their earnings.

“Fuel has always been the single greatest cost for taxi drivers.”

Russell McLeod is the managing director of Rainbow City Taxis. Picture by Paul Glendell.

However, unlike coach companies, taxis are not able to quickly raise prices as their fees are set by local authorities through the licensing committees.

In Aberdeen, the committee agreed last October not to increase the fare.

This means that taxi fares have not changed since fares were under 140p per litre.

‘We still have to feed our families’

Mr McLeod said: “In normal times it’s every 18 months the fares get reviewed. But we are hoping the licensing committee will at least have a look at it.

“The licensing meeting is on July 5. Even if the committee were to agree to a fare increase we would not get in until probably November.

“There is nowhere else for us to recoup any of our losses. We realise now is not a great time but we have the same costs as any normal person.

“We still have to feed our families. We still have to heat our homes.”

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