Singapore Grab rides to cost more as operator lifts fuel surcharge by 40 cents, launches S$1.1m support package

SINGAPORE, March 31 — Grab will temporarily raise its fuel surcharge by 40 cents (RM1.26) from April 7 as fuel prices continue to climb.

In a report by The Straits Times, the operator told users in an e-mail today that the fee will increase from 50 cents to 90 cents for all trips except those taken on standard or metered taxis.

“We know that every dollar in the daily budget is being stretched right now, and we don’t take the impact of even a small adjustment lightly,” Grab said.

“Fuel costs remain high and unpredictable,” Grab wrote, adding that “the broader volatility means that a temporary adjustment to fares is still necessary” even as the company increases support for drivers.

The operator said it does not take a commission from the surcharge, and the full amount will go to drivers to help offset rising fuel costs linked to disruptions in the Strait of Hormuz.

Grab said the adjustment will remain in place until May 31 and will be reviewed closer to the end date to ensure it reflects market conditions.

The National Private Hire Vehicles Association (NPHVA) said on March 31 that the driver fee was first introduced in 2022 to help drivers cope with higher living and fuel costs.

Grab also announced a S$1.1 million support package that includes fuel vouchers, higher monthly cash bonuses and increased cashback rebates.

The company said the package and surcharge increase were developed after discussions with NPHVA.

Global fuel prices have climbed as disruptions hit the Strait of Hormuz, a chokepoint that moves about a fifth of the world’s oil and gas.

Fuel prices in Singapore have surpassed levels seen during the Ukraine war in 2022, with 95‑octane petrol priced between S$3.40 and S$3.42 at most pumps.

Taxi operators have also raised fares, with GrabCab, Strides Premier and Prime Taxi increasing metered rates from March 30 to May 31.

ComfortDelGro raised its fares earlier, effective from March 24 to May 31, and introduced a driver fee on its Zig app of 50 cents for fares below S$15 and 80 cents for fares of S$15 or more.

Trans‑Cab chose not to raise fares and instead offered a S$3 rental rebate for drivers from March 10 to April 6.

Other taxi operators have provided fuel vouchers or lower pump prices at in‑house stations to support drivers.

Strides Premier said on March 31 it will offer up to S$500 in fuel credits to new taxi or private‑hire drivers who sign up between March 24 and April 30.

Drivers who commit to a 12‑month contract will receive S$250 in credits, while those who sign a 24‑month contract will receive the full S$500.

The Straits Times said it has contacted Gojek, Ryde, Tada and ComfortDelGro to ask whether they plan to raise fees for rides booked through their apps.