Singapore ride-hailing fares surge as fuel costs hit post-war highs

Ride-hailing and taxi fares in Singapore are set to rise as fuel costs climb to their highest levels since the Ukraine war. Grab will increase its fuel surcharge by 40 cents from April 7, while other operators have already adjusted prices to offset higher expenses.

The changes come as global oil disruptions push local petrol prices above S$3.40 per litre for 95-octane fuel, squeezing drivers and passengers alike. Grab's fuel surcharge will jump from 50 cents to 90 cents for all trips, except those on standard or metered taxis. The adjustment takes effect on April 7 and will last until May 31, with a review planned before the deadline. The company confirmed that it will not take any commission from the surcharge, passing the full amount directly to drivers.

Other operators, including Strides Premier, Prime Taxi, and ComfortDelGro, have also raised fares in response to rising fuel costs. Strides Premier is offering new drivers up to S$500 in fuel credits if they sign up between March 24 and April 30. Meanwhile, Grab has rolled out a S$1.1 million support package, which includes fuel vouchers, higher monthly bonuses, and increased cashback rebates for its drivers.

The surge in fuel prices follows global supply disruptions, particularly in the Strait of Hormuz—a critical chokepoint for about a fifth of the world's oil and gas. Local pumps now list 95-octane petrol between S$3.40 and S$3.42 per litre, exceeding levels seen during the 2022 Ukraine conflict. The National Private Hire Vehicles Association (NPHVA) had previously introduced a driver fee in 2022 to help offset rising living and fuel costs. The fare increases will remain in place for at least two months, with Grab's surcharge under review before the end of May. Drivers will receive the full surcharge amount, alongside additional support measures from operators. Passengers can expect higher trip costs as fuel prices continue to climb above previous peaks.