Grab to temporarily raise fuel surcharge by 40 cents amid fuel price volatility

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SINGAPORE – Grab rides will cost slightly more from April 7, as the ride-hailing operator increases a surcharge meant to defray fuel expenses for drivers.

In an e-mail sent to users on March 31, Grab said it will increase the current 50-cent fee to 90 cents for each trip that is not on a standard or metered taxi.

The adjustment will run until May 31, with the operator adding that it will review it closer to the end date “to ensure it remains appropriate for prevailing market conditions”.

Grab said it does not take a commission from the amount paid, with the full 90 cents going to drivers to help them cope with the rising cost of fuel, spurred by the ongoing conflict in the Middle East.

The driver fee was introduced in 2022 to help drivers cope with the rising costs of living and fuel, said the National Private Hire Vehicles Association (NPHVA) on Facebook on March 31.

Separately, Grab also announced on March 31 a $1.1 million support package to assist its drivers, which includes fuel vouchers as well as increases in both monthly cash bonuses and cashback rebates.

Both the support package and the increase in fuel surcharges were developed after discussions with the NPHVA, the operator said in a statement.

“We know that every dollar in the daily budget is being stretched right now, and we don’t take the impact of even a small adjustment lightly,” said a Grab spokesperson.

“Fuel costs remain high and unpredictable, and while Grab is significantly increasing our support for driver-partners, the broader volatility means that a temporary adjustment to fares is still necessary.”

Fuel prices across the world have been surging due to disruptions in the Strait of Hormuz, which carries about a fifth of the world’s oil and gas.

In Singapore, the cost of fuel has surpassed highs set during the outbreak of the Ukraine war in 2022, with current prices for 95-octane petrol hovering between $3.40 and $3.42 at most petrol pumps here.

Acknowledging the pressure that rising fuel prices place on drivers, a spokesperson for Tada said the ride-hailing operator is exploring support measures, including possibly adjusting fees. Details are in the midst of being finalised, and more information will be given once confirmed.

“Drivers remain at the heart of our platform, and we are committed to supporting them while keeping the platform fair and reliable for all,” the spokesperson added.

Taxi operators have also raised their fares in recent times, with GrabCab, Strides Premier and Prime Taxi increasing their metered fares from March 30 to May 31.

ComfortDelGro was the earliest to raise fares, with the move effective from March 24 to May 31, and it also introduced a driver fee for bookings made on its Zig app. The fee is set at 50 cents for fares below $15 and 80 cents for fares of $15 or more.

Trans-Cab is the only taxi operator that chose not to raise fees, instead providing drivers with a vehicle rental rebate of $3 from March 10 to April 6.

Similar assistance was also provided by the other taxi operators, in the form of fuel vouchers and lower fuel prices at in-house fuel stations.

Strides Premier on March 31 said it is providing up to $500 in fuel credits to new taxi or private-hire vehicle drivers who sign up with it between March 24 and April 30.

Those who sign a 12-month contract will be entitled to $250 in credits, while the full amount is reserved for new drivers who sign a 24-month contract.

The Straits Times has contacted Gojek and Ryde to find out if they will be raising any fees for rides booked through their apps.