Much lower diesel price prompted move; other operators yet to decide
By
Christopher Tan, Senior Correspondent
Though just a small player in the Singapore taxi industry, Trans-Cab announced that come Nov 11, it will lift the controversial fuel surcharge. -- ST PHOTO: NG SOR LUAN
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.
OTHERS SHOULD FOLLOW
'Why aren't the other companies waiving the surcharge too since the price of diesel has fallen so much?'
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?'
