Taxi fares in singapore will be increased again to $3.80

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An honorable member of the Coffee Shop Has Just Posted the Following:

TAXI FARES IN SINGAPORE WILL BE INCREASED AGAIN TO $3.80

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6 Nov 2014 - 12:06pm








Claiming to simplify the taxi fare structure, the government might soon increase taxi fares and the interval jumps of the fares.

The flag-down fare might be increased to $3.80. Currently, it is between $3 and $5.

The distance- and time-based interval jumps might also be increased to 30 cents. Currently, the interval jumps are in the range of 22, 30 and 33 cents.

For peak-hour surcharges, they might become lower but the midnight surcharge would stay the same.

Location surcharges are also likely to be standardised. They currently range from $3 to $5.

A monthly Electronic Road Pricing (ERP) levy of $150 might be imposed.

Currently, Trans-Cab and Premier Taxis have the cheapest fares with a flag-down fee of only $3. SMRT has the most expensive fares, going up to a flag-down fare of $5 for their limousines.

Trans-Cab also has the lowest booking fees of as low as $2.30 during off-peak hours. This goes to as high as $20 for SMRT’s limousines.

Last year, Senior Minister of State for Finance and Transport Josephine Teo said, “Taxi fares were deregulated in September 1998 to allow taxi companies to set their own fares, so that they can be more responsive to market conditions.”

However, she admitted that, “we recognise that the current taxi fare structure is complex and confusing for commuters”.

“LTA will work with the Public Transport Council (PTC) and the taxi companies to study if and how it could be made simpler and more easily comparable across different taxi companies,” she had said.

She also said that it would “(take) into consideration also the impact on taxi drivers, ultimately to have a taxi fare structure that best serves commuters interests.”







It is uncertain how taxi drivers and commuters have been consulted on the possible changes.

Taxi drivers have said that they would prefer to have the ERP charges removed. The surcharges have also meant that it has become more difficult for commuters to look for taxis during peak hours in certain areas.

However, even as the government would plan to regulate taxi fares, there has been no attempt to regulate taxi rentals. It is known that taxi rentals have become a killer for many taxi drivers, who have been forced to work longer hours, in order to pay off the rents.

It is not known how rents are decided but the largest taxi company ComfortDelGro owns the largest fleet and usually gets to decide the market rate.

In fact, with the current round of changes, taxi companies are also looking to ComfortDelgro to comment.

The taxi culture in Singapore has become unhealthy, where taxi companies are held beholden to the largest company, which acts like a monopoly.

It is a good move for the Transport Ministry to step in to regulate. However, it is highly questionable why the fares are being regulated upwards, instead of for the fares to be maintained at the current $3 to $3.20 for the normal taxis.

It is also unknown if limousines would have the same flag-down rates. If so, this would mean that the large majority of the taxi commuters would have to subsidise the use of these taxis.
Also, for a regulation to focus solely on fares, without looking at a comprehensive regulatory framework across the board, such as including for taxi rental, is short-sighted and poorly thought-out.


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