The future of a “temporary” 5p cut to duty, which was brought in due to the war in Ukraine, is also in doubt.
More than half the cost of a tank of petrol or diesel is made up of tax when fuel duty and VAT is taken into account.
“Well, to be honest, I don’t think we’d be able to survive,” said Mr Davies.
“We probably might have to finish, or certainly cut down, cut cars out of the fleet.”
The company spends about £1,000 a week on fuel, with each of its 10 cars averaging about 30,000 miles (48,000km) a year.
Mr Davies said the price of diesel has risen from about 124p to 133.2p in the past five years, with a peak of 192p in the summer of 2022, which hit the company hard.
“We were losing money and I was contemplating finishing with the taxi business because we were not making anything,” he said.
