ComfortDelGro, on March 28, announced that it will increase its fares on all its taxis temporarily. The proposed one-cent increase will affect distance and waiting time fares. The flagdown fare will remain unchanged, says ComfortDelGro.
Based on the proposed revision, fares will increase by about 32 cents for a travelled distance of 10km. Assuming an average of 10 to 12 trips a day, cabbies’ earnings are expected to improve by between $3.20 and $3.84 daily.
This will help to cushion the impact of the recent surge in fuel prices, which has increased their daily fuel costs by between $3.55 and $13.50 in the last month alone.
The temporary fare increase will take effect from April 4.
The increase is due to the sharp increase in fuel prices in recent weeks, and comes after receiving “strong feedback” from the group’s drivers.
Global oil prices have increased by over 50% in the last six months, with market pump prices crossing the $3 mark.
See also: SBS Transit and France's RATP Dev JV wins tender to operate Jurong Region Line for $750 million
The measure will be reviewed by the end of May. It will be removed once fuel prices ease, says the transport operator.
“The ongoing conflict in Ukraine has wrecked havoc on global fuel prices. In the last month alone, the price of petrol has surged by 21%. And even though we have been absorbing a large part of the increase in fuel costs so that our drivers can enjoy a lower rate of $2.20 per litre of petrol, compared to the $3.05 per litre if they had pumped outside, they are still paying close to 14% more than what they were paying in February,” says Jackson Chia, CEO of ComfortDelGro Taxi.
Chia, who said that the decision to introduce the temporary fuel-linked fare hike came after careful consideration, adds, “even with the ongoing rental rebates and the special one-off rental rebate, drivers are still finding it difficult to make ends meet. We hope commuters will understand that this move is a measure of last resort and will be removed once fuel prices return to reasonable levels.”
As at 3.29pm, shares in ComfortDelGro are trading 3 cents higher or 2.04% up at $1.50.
