SINGAPORE: Grab will extend its temporary fare changes, comprising a higher fuel surcharge as well as increased metered fares for rides with its taxi arm, until July 31.
The ride-hailing operator said in a statement on May 22 that it is doing so to provide “continued relief” for its drivers who are dealing with higher fuel prices.
These fare adjustments, which were first made known in March, were originally slated to run until May 31.
On March 23, Grab announced that GrabCab will increase the unit fare for metered taxi rides from 26 cents to 27 cents for every 45 seconds of waiting, every 400m travelled between 1km and 10km, and every 350m travelled beyond 10km. This took effect on March 30.
Separately, on March 31, it told users that it would increase the 50-cent fuel surcharge to 90 cents for all transport bookings from April 7, except those on a standard or metered taxi.
It said then that it would carry out a review closer to the end date “to ensure it remains appropriate for prevailing market conditions”.
According to data from the Price Kaki app, developed by the Consumers Association of Singapore, the price of 95-octane grade fuel was at S$3.46 per litre at Caltex, Esso, Shell and Sinopec petrol stations as at May 22.
The same grade of petrol costs $2.64 at Cnergy, and $3.42 at SPC.
When the war in Iran broke out on Feb 28, it was $2.88 a litre at most petrol stations.
Fuel prices across the world have surged since the war, largely due to disruptions in the Strait of Hormuz, which carries about a fifth of the world’s oil and gas.
The cost of fuel in Singapore has surpassed highs set during the outbreak of the Ukraine war in 2022.
Raven Lee, executive secretary of the National Private Hire Vehicles Association, noted on May 22 that the fare adjustments provide a “much-needed cushion” for drivers feeling the pinch.
Alvin Wee, Grab Singapore’s senior director of transport and country operations, said: “We recognise the pressure our partners face as a result of higher pump prices.
“We are maintaining these adjustments to ensure driving remains a viable livelihood, while keeping the marketplace sustainable.”
Grab said it does not take a commission on the fuel surcharge or the GrabCab unit fare. - The Straits Times/ANN
