Fueled fares

Comfort Delgro, Singapore's largest taxi operator, have increased taxi fares from 10 July 2006. The flag down rate have gone up by 10 cents to $2.50 while Mercedes cabs have increased by 20 cents to $2.80. The $1 peak period surcharge have doubled to $2 and the peak hour surcharge have started earlier at 7 am instead of 7.30 am. In addition, every 10 cents clocked on the meter will carry passengers over a shorter distance. The other taxi operators like SMRT and Premier have also followed suit.

Rising fuel prices have been cited as the reason for the fare hike and as taxi fares have been deregulated since 1998, the market set the fares and no approval is needed from the PTC (Public Transport Council) for any fare increases.

Yet there are concerns that fare increases would hurt taxi drivers as commuters may choose other modes of public transport over taxis. Some feel that higher fares would be additional financial burden for commuters and some feel that service standards must be improved in order to justify the increase.

It seems that the trend of fare increases in Singapore's public transport have become a convenient way to pass on costs to the consumers, as more and more people feel frustrated with escalating living costs with no one seeming to sympathise with them. If decision makers were more in-tuned with the man on the street, perhaps real solutions could be derived.

I was listening to a cab driver telling about the fare hike on my journey home. He was telling me about how most of his taxi driver friends didn't agree to the fare increase as it doesn't help out with their situation.

He was suggesting that since the reason for the fare increase was due to increase in fuel prices, then there should be a separate fuel tax surcharge altogether, similar to that in air tickets. When the fuel prices are higher, the fuel tax surcharge would be higher proportionately and similarly when fuel prices go down, so would the surcharge. It would be a more intelligent and fair way to bill the constomer but have we explored that option?