If Airline companies can impose Fuel surcharges to fight rising
fuel, why can't TAXI!
SINGAPORE - Premier Taxis will impose a 50-cent fuel surcharge
in addition to its flag down rate from next Wednesday. Other taxi
companies said they have no plans to do so for now.
Premier Taxis, which operates a fleet of just over 2,000 cabs,
said yesterday the surcharge was necessary after hearing from its
hirers hat they were losing S$10 or more a day due to fuel costs.
Diesel costs about S$1.60 at petrol stations (taxi drivers pay
about S$1.10 per litre now at company-run pumps). Six months ago,
diesel at petrol stations cost S$1.30.
Premier managing director Lim Chong Boo told MediaCorp that the
firm considered the possibility of customers boycotting Premier
cabs due to the move.
But their dollar sense weighed in.
"Some of the more industrious and good drivers were losing
money. The rationale is we don't want to lose good drivers or
compromise on service standards. Somebody has to show sense. We
believe that in the long run, it's good for the industry," said Mr
Lim.
He also provided a similar situation in 2008, when the industry
lost many good drivers who could not earn enough to cover costs, in
spite of the fact that most taxi companies imposed a 30-cent fuel
surcharge that lasted from July to November that year.
ComfortDelGro, the largest operator here with about 15,800
Comfort and CityCab taxis, said it has no plans to impose a fuel
surcharge.
Prime general manager Tan Soon Chye said that the company would
not be among the first to impose a surcharge while SMRT Taxis
vice-president James Ng said it has no plans to date to do so as
well.
Business development executive Wong Peishan, 25, felt Premier's
surcharge was "a bit premature" despite global hikes in fuel prices
and hopes that the surcharge will not last.
Mr Lim said the "critical price" for the surcharge removal -
which happens when fuel prices fall - was still being worked out.
The demand for taxis was also a consideration.