Singapore taxi operators absorb costs at their pumps as petrol prices rise again amid Middle East war

Published Fri, Mar 6, 2026 · 07:33 AM

SINGAPORE – Some taxi operators are now absorbing part of the increase in fuel costs at in-house pumps, while several petrol stations continued to raise their prices as the war in the Middle East rages on.

ComfortDelGro (CDG), Singapore’s largest taxi operator, was offering petrol at $1.93 per litre as at the morning of Mar 5 at its six fuel stations in Singapore. This was a five-cent increase from Mar 4 when it was selling petrol at $1.88.

However, the new rates, which are still significantly lower than the posted prices being offered at petrol stations, will benefit its taxi and private-hire drivers, said the company.

The posted price could differ from what drivers actually pay at the pump as it does not factor in discounts.

ComfortDelGro’s move comes as petrol station operators Shell, Caltex and Esso raised the prices of their fuel for the second time in three days, with the popular 95-octane grade rising by five cents to $2.97 as ripples of the escalating conflict in the Middle East extended to Sri Lanka.

The moves are a continuation of hikes by a wider pool of petrol stations which began on Mar 3.

Prices of 95-octane grade fuel have risen by as much as nine cents from Feb 28, when the US and Israel launched an attack on Iran. The posted price of 92-octane, 98-octane and the so-called premium 98-octane petrol have also increased by up to nine cents over the same period.

Diesel prices have also climbed, with the highest being $2.78 per litre at Esso, Shell and Caltex.

ComfortDelGro, which manages more than 8,400 taxis and a smaller group of private-hire vehicles, declined to define the portion of costs it was absorbing in a wider effort to alleviate the financial pressure on drivers.

The fuel subsidies, issued in collaboration with the National Taxi Association (NTA), are “part of a broader commitment to driver welfare and operational stability during this period of volatility”, Mr Michael Huang, head of the company’s Singapore point-to-point mobility business said.

“We are closely monitoring the impact of rising fuel costs driven by the ongoing geopolitical tensions and recognise the direct pressure this places on the livelihoods of our drivers,” he added.

Private taxi operator Trans-Cab is also absorbing a portion of the fuel price increase to ease cost pressures on its drivers. The firm also declined to provide a quantum of its level of support, as it said the measures were “being reviewed on an ongoing basis in response to fuel price movements”.

“Our approach is to calibrate the level of absorption in line with prevailing market conditions to ensure that assistance remains sustainable and responsive,” it said.

Strides Premier, which runs the Republic’s second-largest taxi fleet, did not respond to ST’s requests for comment.

Ride-hailing platform Grab has said it provides fuel discounts through its partnerships with Caltex, Shell and Sinopec to help driver and delivery partners manage costs.

Prices of petrol are expected to rise as the war with Iran intensifies, halting activity in a waterway critical to oil supplies.

The NTA said in a statement that any increase in fuel costs “will impact both in-house taxi operator pumps and retail fuel pump prices”.

It added that the five-cent increase in petrol price by ComfortDelGro was a step in a “phased approach” to raise prices which will “help drivers better manage the adjustment”. The operator is due to make another increase a week later.

“Even with these revisions, CDG pump prices for its drivers remain approximately 34 per cent lower than prevailing retail pump prices,” NTA said.

“NTA has also reached out to other taxi operators to explore ways they can continue supporting drivers during this period of fuel price volatility,” it added.

“We will continue to monitor the situation closely and work with operators and partners to cushion the impact on our drivers’ livelihoods wherever possible.”

The Consumers Association of Singapore has urged fuel companies to exercise restraint in raising prices pre-emptively. THE STRAITS TIMES