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Commuters may face higher taxi and private-hire car fares as fuel prices climb amid escalating tensions in the Middle East. (File photo: CNA/Jeremy Long)
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Germaine Wong & Calvin Yang
19 Mar 2026 04:16PM (Updated: 19 Mar 2026 04:25PM)
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SINGAPORE: Commuters may face higher taxi and private-hire car fares as fuel prices climb amid escalating tensions in the Middle East.
Ride-hailing companies have introduced measures to help drivers cope with increasing fuel costs.
However, observers warn that if the conflict persists, businesses could be forced to take further action.
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Analysts noted that transport companies can explore various measures to help drivers offset rising fuel costs.
Associate Professor Walter Theseira of the Singapore University of Social Sciences said the likely outcome for consumers is higher fares.
“There is no regulation that says that the only way you can address this problem is to implement a specific surcharge on the fare,” he said.
“You could always just increase the base fare overall, or you could let the surge pricing and supply and demand basically do the work,” he added.
“So there are many different ways of dealing with it, but I do expect the end result for consumers is that the fares are going to get higher."
Ride-hailing platform Grab said it will continue providing drivers with fuel discounts through partnerships with petrol stations to help them manage their costs.
“We understand that rising fuel prices impact the livelihoods of our driver- and delivery-partners,” said a Grab spokesperson.
“We remain in close consultation with unions and industry partners to monitor the situation and explore further avenues to support our partner community.”
For taxi operator Strides Premier, its in-house fuel kiosks will offer prices up to 35 per cent lower than prevailing market rates.
“This initiative complements our existing rental schemes, some of which already provide fuel credits to help offset drivers’ operating costs,” said Ms Khoo Gui Ju, general manager of Strides Premier's vehicle leasing business.
“Together, these measures are designed to ease cost pressures and support the livelihoods of our driver-partners.”
Car-sharing service GetGo has raised its mileage rate by 5 cents per kilometre for its non-EV vehicles, citing “a significant increase in costs” due to higher global fuel prices.
“We will continue to monitor the situation closely and do our best to provide support for our users,” it said.
Meanwhile, ride-hailing platform TADA said it is constantly looking for ways to support drivers and boost their earnings, including measures to improve welfare and daily income, with more details to be shared in due time.
“The platforms are going to have to be proactive about this. They're going to need to do something to restore driver earnings,” he said.
“Otherwise, their drivers are going to start dropping out of the business, or they'll start switching to a platform which has already moved to try to raise fares somewhat.”
With ride-hailing prices set to increase, commuters told CNA their transport choices will depend largely on necessity.
“Normally, I only take Grab when I oversleep for work or when I'm rushing to go somewhere. If not, I always try to take public transport,” said one commuter.
“Nowadays, the prices are increasing, and so it's getting a bit not so affordable.”
Drivers are also seeking ways to reduce fuel costs.
Local petrol station brand Cnergy has seen long queues in recent days, as its prices are lower than its competitors.
Meanwhile, the Consumers Association of Singapore (CASE) has called on fuel companies to exercise restraint and transparency in pricing adjustments.
Source: CNA/ca(dn)
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Commuters to face higher ride-hailing fares as petrol prices climb: Analysts
Observers warn that if the Middle East conflict persists, businesses could be forced to take further action.
Commuters may face higher taxi and private-hire car fares as fuel prices climb amid escalating tensions in the Middle East. (File photo: CNA/Jeremy Long)
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19 Mar 2026 04:16PM (Updated: 19 Mar 2026 04:25PM)
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Read a summary of this article on FAST.FAST
SINGAPORE: Commuters may face higher taxi and private-hire car fares as fuel prices climb amid escalating tensions in the Middle East.
Ride-hailing companies have introduced measures to help drivers cope with increasing fuel costs.
However, observers warn that if the conflict persists, businesses could be forced to take further action.
FUEL COST PRESSURES RISE
Taxi operator ComfortDelGro said on Tuesday (Mar 17) that it will implement a temporary "driver fee" for bookings made through its CDG Zig application as fuel prices continue to rise.CNA Games
Guess Word
Crack the word, one row at a time
Buzzword
Create words using the given letters
Mini Sudoku
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Show More
Show Less
The move is aimed at easing the financial strain on drivers, the transport firm said.Show Less
Analysts noted that transport companies can explore various measures to help drivers offset rising fuel costs.
Associate Professor Walter Theseira of the Singapore University of Social Sciences said the likely outcome for consumers is higher fares.
“There is no regulation that says that the only way you can address this problem is to implement a specific surcharge on the fare,” he said.
“You could always just increase the base fare overall, or you could let the surge pricing and supply and demand basically do the work,” he added.
“So there are many different ways of dealing with it, but I do expect the end result for consumers is that the fares are going to get higher."
Ride-hailing platform Grab said it will continue providing drivers with fuel discounts through partnerships with petrol stations to help them manage their costs.
“We understand that rising fuel prices impact the livelihoods of our driver- and delivery-partners,” said a Grab spokesperson.
“We remain in close consultation with unions and industry partners to monitor the situation and explore further avenues to support our partner community.”
For taxi operator Strides Premier, its in-house fuel kiosks will offer prices up to 35 per cent lower than prevailing market rates.
“This initiative complements our existing rental schemes, some of which already provide fuel credits to help offset drivers’ operating costs,” said Ms Khoo Gui Ju, general manager of Strides Premier's vehicle leasing business.
“Together, these measures are designed to ease cost pressures and support the livelihoods of our driver-partners.”
Car-sharing service GetGo has raised its mileage rate by 5 cents per kilometre for its non-EV vehicles, citing “a significant increase in costs” due to higher global fuel prices.
“We will continue to monitor the situation closely and do our best to provide support for our users,” it said.
Meanwhile, ride-hailing platform TADA said it is constantly looking for ways to support drivers and boost their earnings, including measures to improve welfare and daily income, with more details to be shared in due time.
Related:
Cnergy petrol prices creep higher, but its stations still draw long queues
ComfortDelGro to introduce temporary charge for app bookings amid rising fuel prices
MORE MEASURES EXPECTED
Assoc Prof Theseira said businesses may step up measures as they realise the fuel hikes could persist longer than expected.“The platforms are going to have to be proactive about this. They're going to need to do something to restore driver earnings,” he said.
“Otherwise, their drivers are going to start dropping out of the business, or they'll start switching to a platform which has already moved to try to raise fares somewhat.”
With ride-hailing prices set to increase, commuters told CNA their transport choices will depend largely on necessity.
“Normally, I only take Grab when I oversleep for work or when I'm rushing to go somewhere. If not, I always try to take public transport,” said one commuter.
“Nowadays, the prices are increasing, and so it's getting a bit not so affordable.”
Drivers are also seeking ways to reduce fuel costs.
Local petrol station brand Cnergy has seen long queues in recent days, as its prices are lower than its competitors.
Meanwhile, the Consumers Association of Singapore (CASE) has called on fuel companies to exercise restraint and transparency in pricing adjustments.
Source: CNA/ca(dn)
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