Flat tariff of 30 to 40 cents may be imposed to help cabbies offset soaring cost of diesel
By Christopher Tan, Senior Correspondent
Just months after taxi fares rose sharply, cab commuters may have to brace themselves for another cost hike: fuel surcharges.
The Sunday Times has learnt that taxi companies here are proposing what airlines have been applying since 2004 - a surcharge on top of stated fares to defray rising fuel prices. In the case of airlines, the surcharges are sometimes higher than the fares.
Industry sources say the fuel surcharge being considered for cabs could be a flat tariff of 30 to 40 cents a ride. If a cabby makes about 20 trips per shift, a 40-cent tariff would lift daily takings by $8, helping to offset the rise in fuel expenses.
Since the last cab fare increase in December, prices of diesel at the pumps have climbed by 40 cents a litre to a record $1.933 (before discount). A cabby on a single shift covering about 250km would have seen his fuel bill rising by close to $10 a day over the period.
Although operators have not made a firm decision, observers reckon the surcharge could be implemented in the next few weeks.
Mr Lim Chong Boo, managing director of Premier Taxis, said: ‘We’ll have to wait for ComfortDelGro to take the lead.’
Ms Tammy Tan, spokesman for ComfortDelGro, the biggest cab group, said: ‘This is something that is being looked at, given the unabated rise in fuel prices. But no decision has been taken yet.’
Mr Neo Nam Heng, managing director of Prime Taxis, whose fleet runs entirely on compressed natural gas, said even if other players went ahead with a fuel surcharge, he might not. ‘We cannot follow blindly. After all, we are not using the same fuel as they are. We will gather feedback from our drivers before making the next move.’
There are six taxi companies here with a total fleet of about 24,000 cabs. As the industry is deregulated, they do not need to seek approval from the authorities to make changes to fares, unlike the bus and train operators.
Taxi drivers have mixed reactions to news of the proposal.
Cabby Azman Mohamed, 45, said: ‘We’ve seen a drop in passenger numbers since the fare increase. This is not going to help us. This will only help the bus and MRT companies because fewer people will take cabs. What we want is more passengers, not driving around empty burning more fuel.’
Fellow driver S.H. Ngiam, 53, said: ‘We have too many surcharges. This will put off more people.’
But cabby Tony Pang, 59, felt it was ‘a good move as it will relieve the hardship of rising diesel prices’.
Other cabbies said the time is not right for such a move, with inflation rate at a 26-year high. ‘We’ll be digging our own graves,’ one said.
Commuters are obviously displeased with the prospect.
Merchandiser Ivy Ong, 42, spoke for many when she said: ‘Oh no. I will not take taxis unless it is absolutely necessary.’
Ms Dawn Chia, 28, who is in public relations, said it would be ’slightly insensitive of cab companies’ given that the last fare hike was ‘imposed very recently’.
Consumers Association of Singapore executive director Seah Seng Choon noted that when fares were raised recently, fuel cost was cited as one of the reasons.
‘Therefore, cab companies owe the public a good explanation to show cause for such a proposal to be justifiable,’ he said.
Taxi companies raised fares on Dec 17 last year. The flag-down fare rose by 30 cents to $2.80 and meters jumped at shorter intervals.
The city surcharge trebled to $3 from 5pm to midnight, and the peak-period surcharge was changed to 35 per cent of the metered fare from a flat $2.
Although cabbies said the number of fares has fallen since, takings have improved.
National University of Singapore transport researcher Lee Der-Horng said: ‘Fuel cost should be properly reflected in fares, but imposing a surcharge now may worsen the public’s impression of the taxi industry, especially when inflation is on everyone’s mind.’
Mr Seng Han Thong, adviser to the Taxi Operators’ Associations, said: ‘Diesel prices have gone up by about 50 per cent from a year ago. Many taxi companies have also been giving fuel rebates to drivers. But this would not be sustainable in the long run.
‘We welcome and support any proposal from companies to help drivers reduce their burden. A fuel surcharge could be one way.’
christan@sph.com.sg
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