SINGAPORE: Operators of essential bus services for the elderly and people with disabilities say that the government’s move to cover part of their fare revenues will cushion the impact of rising fuel prices.
But these firms, which often operate on thin margins, say the co-funding – covering services from April to June – is not a long-term solution if the Middle East conflict drags on.
Longer-term support is crucial for this niche sector, which cannot simply pause services or raise fares and leave vulnerable populations without transport options, the operators said.
Mr Chua Jun Jie, founder of Dexterity Medical and Transport Services, said he used to spend between S$1,800 (US$1,410) and S$2,000 per month to refuel his six 13-seater buses with hydraulic wheelchair lifts.
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But since prices spiked in March, he spent S$4,600 on fuel that month – more than twice his usual expenditure.
To save fuel, he has told his drivers not to turn on the bus engine when operating the hydraulic wheelchair lift. “Battery power is cheaper than petrol right now,” he said.
One thing he refuses to do is to increase fares.
“We cannot add on these extra costs to our clients. Most of our clients are from disadvantaged backgrounds, lower-income families – they might already have cost-of-living difficulties,” he said.
Acting Minister for Transport Jeffrey Siow announced on Tuesday that the government would temporarily co-fund cost increases for certain essential bus services, as part of S$1 billion worth of support measures for businesses and households.
On Thursday, the government said it will provide three months of support – equivalent to 13 per cent of fare revenues – to transport operators serving school children, people with disabilities, some seniors and patients.
Fares may still have to rise if fuel prices remain elevated beyond the support period, it said.
For operators like wheelchair-accessible transport firm Vimo Services, the damage from rising fuel costs has already been severe.
Fuel expenses for its 18 vehicles have jumped 140 per cent – S$18,000 in the second half of March, compared with S$7,500 before that.
“We have seen zero profit over the past month,” said its founder Victor Teo.
To keep afloat, he had to do away with a S$2 discount for wheelchair transport services and introduce a S$3 surcharge per ride in April.
“Our customers have been understanding of these changes,” said Mr Teo. “We intend to remove the surcharge once fuel prices return to an acceptable level, as we aim to keep this essential service as affordable as possible.”
He has increased rebates for frequent users from 5 per cent to 10 per cent.
Other firms reported smaller increases in fuel expenditure.
Shalom Medcare, which operates 10 to 15 trips a day for seniors and persons with disabilities, said its fuel expenses have surged by about 25 per cent since the start of the year, with overall operating costs rising by 15 to 20 per cent.
The Handicaps Welfare Association, which has 31 high-roof vans and three minibuses, saw diesel costs rise by about 30 per cent across its fleet.
Both firms say they are absorbing the cost increases for now instead of passing them to clients.
“We strive to keep our rates among the most competitive in the market because many of our clients are on fixed incomes or rely on financial assistance,” said Mr Javier Chan, operations manager at Shalom Medcare.
Firms said the 13 per cent co-funding of fare revenues acts as a cushion in this time of need, but may not address what happens in the longer term.
Mr Teo from Vimo Services said the 13 per cent funding on fare revenue will offset about 30 to 40 per cent of his firm's cost increases caused by the surge in fuel prices.
“Furthermore, we are concerned that the process for obtaining this funding – which likely requires formal declarations and audited statements – will be too slow,” he added.
“Many operators in this sector work on very thin margins due to high Certificate of Entitlement prices and may not have the administrative capacity or financial reserves to wait for such disbursements.”
The Ministry of Social and Family Development said on Thursday that it will provide support to eligible social service agencies, which will then be required to disburse the grant to their contracted transport operators.
Mr Teo added that many drivers operate as one-man operations, and is concerned about how the financial support will reach them.
“We urge the government to consider more direct assistance to ensure support reaches every affected driver,” said Mr Teo.
Mr Chua from Dexterity Medical and Transport Services said that while the 13 per cent co-funding would act as a cushion for the time being, he is not optimistic that the fuel hikes brought about by the war on Iran will ease by June.
He said longer-term solutions such as a waiver of road taxes for essential bus services should be considered.
Vehicles currently exempted from road tax in Singapore include ambulances, medical transport vehicles and vehicles used in firefighting.
Mr Chan from Shalom Medcare hopes for targeted diesel and petrol rebates specifically for wheelchair-accessible vehicles or medical transport-certified vehicles.
“Our clients’ lives depend on these trips. We are committed to keeping our services running, but long-term sustainability will require a collective effort between the private sector and government support,” he said.
Mr Siow said in parliament on Tuesday that road tax rebates or reduction of petrol and diesel duties will not be introduced as these tools are too blunt and will work against the design of existing price signals set before the conflict in the Middle East.
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But these firms, which often operate on thin margins, say the co-funding – covering services from April to June – is not a long-term solution if the Middle East conflict drags on.
Longer-term support is crucial for this niche sector, which cannot simply pause services or raise fares and leave vulnerable populations without transport options, the operators said.
Mr Chua Jun Jie, founder of Dexterity Medical and Transport Services, said he used to spend between S$1,800 (US$1,410) and S$2,000 per month to refuel his six 13-seater buses with hydraulic wheelchair lifts.
CNA Games
Show More Show Less
But since prices spiked in March, he spent S$4,600 on fuel that month – more than twice his usual expenditure.
To save fuel, he has told his drivers not to turn on the bus engine when operating the hydraulic wheelchair lift. “Battery power is cheaper than petrol right now,” he said.
One thing he refuses to do is to increase fares.
“We cannot add on these extra costs to our clients. Most of our clients are from disadvantaged backgrounds, lower-income families – they might already have cost-of-living difficulties,” he said.
Related:
Acting Minister for Transport Jeffrey Siow announced on Tuesday that the government would temporarily co-fund cost increases for certain essential bus services, as part of S$1 billion worth of support measures for businesses and households.
On Thursday, the government said it will provide three months of support – equivalent to 13 per cent of fare revenues – to transport operators serving school children, people with disabilities, some seniors and patients.
Fares may still have to rise if fuel prices remain elevated beyond the support period, it said.
"ZERO PROFIT"
For operators like wheelchair-accessible transport firm Vimo Services, the damage from rising fuel costs has already been severe.
Fuel expenses for its 18 vehicles have jumped 140 per cent – S$18,000 in the second half of March, compared with S$7,500 before that.
“We have seen zero profit over the past month,” said its founder Victor Teo.
To keep afloat, he had to do away with a S$2 discount for wheelchair transport services and introduce a S$3 surcharge per ride in April.
“Our customers have been understanding of these changes,” said Mr Teo. “We intend to remove the surcharge once fuel prices return to an acceptable level, as we aim to keep this essential service as affordable as possible.”
He has increased rebates for frequent users from 5 per cent to 10 per cent.
Other firms reported smaller increases in fuel expenditure.
Shalom Medcare, which operates 10 to 15 trips a day for seniors and persons with disabilities, said its fuel expenses have surged by about 25 per cent since the start of the year, with overall operating costs rising by 15 to 20 per cent.
The Handicaps Welfare Association, which has 31 high-roof vans and three minibuses, saw diesel costs rise by about 30 per cent across its fleet.
Both firms say they are absorbing the cost increases for now instead of passing them to clients.
“We strive to keep our rates among the most competitive in the market because many of our clients are on fixed incomes or rely on financial assistance,” said Mr Javier Chan, operations manager at Shalom Medcare.
Related:
CALLS FOR LONGER-TERM MEASURES
Firms said the 13 per cent co-funding of fare revenues acts as a cushion in this time of need, but may not address what happens in the longer term.
Mr Teo from Vimo Services said the 13 per cent funding on fare revenue will offset about 30 to 40 per cent of his firm's cost increases caused by the surge in fuel prices.
“Furthermore, we are concerned that the process for obtaining this funding – which likely requires formal declarations and audited statements – will be too slow,” he added.
“Many operators in this sector work on very thin margins due to high Certificate of Entitlement prices and may not have the administrative capacity or financial reserves to wait for such disbursements.”
The Ministry of Social and Family Development said on Thursday that it will provide support to eligible social service agencies, which will then be required to disburse the grant to their contracted transport operators.
Mr Teo added that many drivers operate as one-man operations, and is concerned about how the financial support will reach them.
“We urge the government to consider more direct assistance to ensure support reaches every affected driver,” said Mr Teo.
Mr Chua from Dexterity Medical and Transport Services said that while the 13 per cent co-funding would act as a cushion for the time being, he is not optimistic that the fuel hikes brought about by the war on Iran will ease by June.
He said longer-term solutions such as a waiver of road taxes for essential bus services should be considered.
Vehicles currently exempted from road tax in Singapore include ambulances, medical transport vehicles and vehicles used in firefighting.
Mr Chan from Shalom Medcare hopes for targeted diesel and petrol rebates specifically for wheelchair-accessible vehicles or medical transport-certified vehicles.
“Our clients’ lives depend on these trips. We are committed to keeping our services running, but long-term sustainability will require a collective effort between the private sector and government support,” he said.
Mr Siow said in parliament on Tuesday that road tax rebates or reduction of petrol and diesel duties will not be introduced as these tools are too blunt and will work against the design of existing price signals set before the conflict in the Middle East.
Continue reading...