SINGAPORE: Some taxi companies will absorb part of the recent fuel price increases to cushion the impact on drivers, as the war in the Middle East drives up global oil prices.
Singapore’s largest taxi operator ComfortDelGro said it will cover some of the higher fuel costs, recognising the “direct pressure” that the hikes place on drivers’ livelihood.
“Working with the National Taxi Association to alleviate the drivers’ financial pressure, we will absorb a portion of the increased fuel costs at our pumps and deploy targeted fuel subsidies as part of a broader commitment to driver welfare and operational stability during this period of volatility,” said Mr Michael Huang, head of its Singapore point-to-point mobility business.
The firm said that as of Thursday morning (Mar 5), its petrol price was S$1.93 (US$1.51) per litre, 34 per cent lower than retail. Its diesel was priced at S$1.41 per litre and 48 per cent lower than retail.
Another taxi operator, Trans-Cab, also committed to absorbing a portion of the fuel price increases to help ease immediate cost pressures on drivers.
"We remain mindful of the challenges faced by our drivers and will continue to assess the situation carefully," said the company, adding that it is closely monitoring developments in the Middle East and the potential impact on fuel prices.
According to online car marketplace Motorist, pump prices for 95-octane in Singapore on Thursday ranged from S$2.91 to S$2.97 per litre. They cost S$2.87 to S$2.88 per litre on Feb 23, before the war in the Middle East began.
Similarly, diesel prices also experienced an increase over the same period - from S$2.57 to S$2.66 per litre, to S$2.61 to S$2.78 per litre.
Ride-hailing operators Grab and Ryde said they have measures to help drivers manage costs.
A Grab spokesperson said it provides exclusive fuel discounts through its partnerships with Caltex, Shell and Sinopec.
"We will continue to monitor the situation closely and are engaging the unions and our industry partners to explore further ways to extend support," said the spokesperson.
Ryde said that it will continue to support its drivers and partners through its zero per cent commission model for full-time drivers.
"This allows drivers to retain the full fare from completed trips, helping them better manage operating costs, including fluctuations in fuel prices," said Ryde.
The firm said it maintains a transparent bonus and incentive structure, in which drivers can clearly see the requirements and rewards for completing trips on the platform.
"This provides drivers with greater certainty in their earnings and the opportunity to earn additional incentives," added Ryde.
Tensions in the Gulf have escalated since the United States and Israel launched a war against Iran on Feb 28.
Iran on Wednesday claimed it had “complete control” of the Strait of Hormuz and warned ships against attempting to pass through it.
The strait is a global energy chokepoint through which roughly a fifth of the world’s seaborne oil transits each day.
Singapore's Energy Market Authority said on Wednesday that the conflict is likely to push up global energy prices and, in turn, electricity tariffs in the country.
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Singapore’s largest taxi operator ComfortDelGro said it will cover some of the higher fuel costs, recognising the “direct pressure” that the hikes place on drivers’ livelihood.
“Working with the National Taxi Association to alleviate the drivers’ financial pressure, we will absorb a portion of the increased fuel costs at our pumps and deploy targeted fuel subsidies as part of a broader commitment to driver welfare and operational stability during this period of volatility,” said Mr Michael Huang, head of its Singapore point-to-point mobility business.
The firm said that as of Thursday morning (Mar 5), its petrol price was S$1.93 (US$1.51) per litre, 34 per cent lower than retail. Its diesel was priced at S$1.41 per litre and 48 per cent lower than retail.
Another taxi operator, Trans-Cab, also committed to absorbing a portion of the fuel price increases to help ease immediate cost pressures on drivers.
"We remain mindful of the challenges faced by our drivers and will continue to assess the situation carefully," said the company, adding that it is closely monitoring developments in the Middle East and the potential impact on fuel prices.
According to online car marketplace Motorist, pump prices for 95-octane in Singapore on Thursday ranged from S$2.91 to S$2.97 per litre. They cost S$2.87 to S$2.88 per litre on Feb 23, before the war in the Middle East began.
Similarly, diesel prices also experienced an increase over the same period - from S$2.57 to S$2.66 per litre, to S$2.61 to S$2.78 per litre.
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Ride-hailing operators Grab and Ryde said they have measures to help drivers manage costs.
A Grab spokesperson said it provides exclusive fuel discounts through its partnerships with Caltex, Shell and Sinopec.
"We will continue to monitor the situation closely and are engaging the unions and our industry partners to explore further ways to extend support," said the spokesperson.
Ryde said that it will continue to support its drivers and partners through its zero per cent commission model for full-time drivers.
"This allows drivers to retain the full fare from completed trips, helping them better manage operating costs, including fluctuations in fuel prices," said Ryde.
The firm said it maintains a transparent bonus and incentive structure, in which drivers can clearly see the requirements and rewards for completing trips on the platform.
"This provides drivers with greater certainty in their earnings and the opportunity to earn additional incentives," added Ryde.
Tensions in the Gulf have escalated since the United States and Israel launched a war against Iran on Feb 28.
Iran on Wednesday claimed it had “complete control” of the Strait of Hormuz and warned ships against attempting to pass through it.
The strait is a global energy chokepoint through which roughly a fifth of the world’s seaborne oil transits each day.
Singapore's Energy Market Authority said on Wednesday that the conflict is likely to push up global energy prices and, in turn, electricity tariffs in the country.
Continue reading...