CNG engines
help Prime Taxi to keep overheads down
SINGAPORE: Prime Taxi bucked the trend this week when it announced
its flagdown fares will not be raised for three months.
But come 1 January, meter rates and city area surcharges will go
up.
Prime Taxi drivers said the companys decision is due to the fact
that overheads are still manageable as rental rates of Primes
taxis are 30 percent below the market average.
Moreover, Primes fleet of 100 taxis run on compressed natural gas
(CNG) which costs 5 cents for every kilometre, compared to diesel
which costs an average of 12 cents per kilometre.
But despite the lower costs, there are practical reasons for the
low takeup of CNG cars, which make up less than 1 percent of the
23,000 taxis in Singapore.
Tan Soon Chye, General Manager of Taxi Division, Prime Taxi, said:
"Currently, if they want to refuel CNG they will need to go to
Jurong Island. However, this will cease to be a problem come
January next year when more CNG kiosks are set up in
Singapore."
Nonetheless, the company does not think there would be more CNG
taxis on the roads anytime soon.
"99 percent of the taxis running on the road now are powered by
diesel. In order to convert to CNG, they need a substantial amount
of money and time," said Mr Tan.
Prime said it is raising meter rates and city area surcharges in
line with ComfortDelGro to attract its drivers into the central
business district during peak hours. CNA/so
