Let cabbies impose fuel surcharge, like airlines

ST Forum Dec 1, 2007

PETROL and diesel prices have gone up again, for the second time last month and the ninth time in the past 11 months, and are more than a quarter higher than at the beginning of this year.

Taxi drivers are the hardest hit. Their earnings are affected whenever there is an increase in the price of diesel as fuel cost is a major part of their operating expenses.

As taxi fares had been kept relatively constant over the years, irrespective of the price of diesel, the spike in diesel prices has greatly reduced taxi drivers' income.

To help taxi drivers cope with rising fuel costs, the Government should allow them to impose a fuel surcharge similar to that charged by airlines whenever the price of jet fuel increases. This method of price adjustment has also been used for electricity tariffs.

For a start, I suggest a fuel surcharge of $1 per taxi trip. That would give taxi drivers an additional income of about $20 each shift, to help cover their additional fuel costs.

This fuel surcharge should be pegged to prevailing diesel prices and reviewed every two to three months, and adjustments made.

Seah Leong Khai