Trans-Cab axes fuel surcharge
Much lower diesel price prompted move; other operators yet to
decide
ONE of Singapore's smallest taxi companies has announced it will
break ranks with industry giants and drop a 30-cent fuel
surcharge.
Trans-Cab, which has a fleet of 2,200 red-and-white taxis, said
it will lift the levy on Nov 11, just over three months after
powerhouse ComfortDelGro introduced the surcharge.
It was quickly adopted by other cab companies, much to the
chagrin of commuters still coming to grips with a fare increase
introduced last December.
Trans-Cab managing director Teo Kiang Ang said the company
decided to lift the levy because the price of diesel has fallen
substantially since July.
'For the customer, the surcharge is not so good,' he said.
The flat surcharge was applied in July to help cabbies dull the
impact of fast-rising diesel prices. But diesel at the pumps has
fallen to $1.55 from the July peak of $2.03, on the back of weaker
global consumption and softer speculative trading.
This has prompted many members of the public to question why cab
operators are still applying the surcharge.
Trans-Cab, a newcomer when the industry was liberalised five
years ago, is the fourth-largest of the six taxi firms here, after
ComfortDelGro, SMRT Corp and Premier Taxis.
The other operators, including Smart Automobiles and Prime
Taxis, have yet to make a decision on the surcharge, though they
had a meeting last Friday with the Taxi Operators' Associations,
which represents the interests of cabbies.
The association was unavailable for comment yesterday, though
ComfortDelGro said: 'We will make an announcement when we have
decided.'
It is unusual for a smaller player like Trans-Cab to make the
first move on pricing matters. Instead, operators often take their
cue from ComfortDelGro, which has about 60 per cent of the cabs
here.
A manager at another operator said: 'We're too small to make
such decisions; so we wait and see what Comfort does.'
Merchandiser Ivy Ong, 42, a regular taxi commuter, welcomed
Trans-Cab's decision to lift the surcharge.
'I will definitely look out for Trans-Cab taxis. But why aren't
the other companies waiving the surcharge too since the price of
diesel has fallen so much?' - ST (29/10/2008)
