Cabbies feel pinch, seek fare hike

Takings of drivers have fallen by about $800 a month, says taxi operators' association
Monday / December 3, 2007
Leong Wee Keat
weekeat@mediacorp.com.sg

THE pressure is growing on taxi companies to raise taxi meter fares as cab drivers complain of rising operational costs.

The Taxi Operators' Association (TOA) - which represents six affiliates - has been in talks with taxi companies to raise meter fares for the "past few months".

TOA adviser and MP Seng Han Thong said: "In view of the rapidly rising operating cost, especially the price of diesel, the TOA has been urging all taxi companies to increase their taxi-meter fares."

Last Wednesday's increase in the price of diesel brought the retail pump price to $1.523, an increase of about 20 to 50 cents per litre from last year. According to the TOA, the "more-than- 20-per-cent increase in diesel pump price since early this year translates to a $12 to $15 increase in daily fuel cost".

The 2-percentage-point increase in the Goods and Services Tax in July also translated into higher taxi rental and call booking costs of about $2 daily. The association estimates that the operating cost for a driver has increased by $25 to $27 daily, or about $780 per month.

Taxi driver T G Poh, who has been driving for the past 13 years, is one of those feeling the pinch. Even though he buys diesel at a subsidised price from his taxi operator, Mr Poh said the price has also increased - from about 70 cents last year to about 90 cents now. He estimates that his takings have been reduced by about $20 each day due to the higher fuel price.

The increases in Electronic Road Pricing (ERP) charges have also hit their earnings, say taxi drivers. Mr Steven Neo said he would "think twice" about entering downtown areas to pick up passengers as he has to foot the ERP charge himself if he does not have a passenger.

"It'll be tough if taxi fares remain as they are," he said. "Costs are rising and we have families to feed too."

When fares were last raised in July last year, rising fuel prices were cited as a reason for the fare hike, with the market price of diesel - at around $1.07 per litre - having gone up by 30 per cent from a year before.

Singapore's largest taxi operator ComfortDelGro raised flag-down fares by 10 cents for normal taxis and 20 cents for limousine taxis ?the first time fares were raised by the company in eight years.

Observers Today spoke to agreed that taxi fares here are lower compared to those in other developed cities, and increases in fares would help cabbies fight rising costs.

Mr Han Songguang, a researcher in the Department of Geography at the National University of Singapore, pointed out that while bus fares have increased this year due to rising costs, taxi fares have "lagged behind". He feels that fare increases for taxis will take place "sooner or later".

Transport engineering consultant Gopinath Menon said an increase of the flag-down fares would initially result in lower demand for taxis, which may be corrected as commuters get used to the new fares. A very steep increase in fares, however, will lessen the demand for a longer time period and may also affect taxi drivers' earnings, added the adjunct professor with Nanyang Technological University.

"Hence, there needs to be fine balance if flag-down fares have to be revised," he said.

Mr Seng hopes the taxi operators will address cabbies' rising costs "as soon as possible".

He said: "The overall taxi meter fare should reflect the operating costs of the taxi business. The TOA's primary consideration is the income stability of the taxi drivers when fare adjustments are made."

For now, the market is waiting for market leader ComfortDelGro to make the first move. The transport giant, with close to a 70 per cent share of Singapore's 23,000-strong taxi market, has refused to comment on fare changes.

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