ComfortDelGro to temporarily hike taxi fares on fuel price rise

A ComfortDelGro taxi on Geylang Road in Singapore. Photo by Dave Kim on UnsplashA ComfortDelGro taxi on Geylang Road in Singapore. Photo by Dave Kim on Unsplash

ComfortDelGro will temporarily increase distance fares for all taxis, effective 4 April, due to sharp increases in fuel prices recently, the land transportation player said in a press release Monday. 

The increase is a result of “strong feedback” from drivers, ComfortDelGro said. 

The temporary increase will be reviewed by the end of May, and will be removed if fuel prices ease, the company said. 

While the flagdown fare will remain unchanged, the proposed one-cent increase will affect distance and waiting time fares, the release said, noting fares will rise by around 32 Singapore cents for a 10 kilometer distance.

ComfortDelGro estimated cabbies’ earnings would rise by S$3.20 to S$3.84 daily, to help cushion the impact of an estimated daily fuel cost increase of S$3.55 to S$13.50 over the past month. 

Jackson Chia, CEO of ComfortDelGro Taxi, noted the Russian invasion of Ukraine has sent the price of petrol up 21 percent over the past month. 

“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 S$2.20 per litre of petrol, compared to the S$3.05 per litre if they had pumped outside, they are still paying close to 14 percent more than what they were paying in February,” Chia said in the statement.

“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,” Chia said.

In addition, ComfortDelGro Taxi provided a one-time rental rebate of S$90 to its drivers for March, on top of existing, Covid-related rental waivers, the release said.

On 1 March, ComfortDelGro had increased fares for the first time in a decade, with the change including a 20 Singapore cent increase in flagdown fares, and a 2 Singapore cent increase in distance fare and waiting times, the release said.