Grab to temporarily raise fuel surcharge to S$0.90 per trip amid fuel crisis

Amid the global fuel crisis, Grab will be temporarily increasing its fuel surcharge by 40 cents, from S$0.50 to S$0.90 per trip.

It will kick in from Apr. 7 to May 31, applying to all except for standard or metered taxi rides.

To support drivers

The ride-hailing platform announced this adjustment in an email to its users on Mar. 31.

It explained that the recent volatility in global fuel prices has significantly increased daily operating costs for Grab's driver-partners.

The adjustments are thus aimed at better supporting them during this period.

All of the S$0.90 surcharge will go directly to the Grab drivers, to help offset the rise in global fuel prices.

Grab does not take a commission from this amount, the platform emphasised.

The amount will be reflected under "Fuel Surcharge" in the passenger fare breakdown, replacing the S$0.50 "Driver Fee", which was introduced during earlier elevated fuel prices.

Metered taxi fare surcharge

Previously on Mar. 23, the platform said it would raise metered taxi fares temporarily from Mar. 30 to May 31 to support its taxi drivers as fuel prices continue to climb.

Grab said it would closely monitor the situation, and would review the adjustments again closer to May 31 to ensure it remains appropriate for prevailing market conditions.

Grab’s S$1.1M support package

Grab will enhance its ongoing monthly rebate programme for April to help eligible driver-partners offset the sudden rise in fuel expenses.

They will receive higher monthly cash bonuses, and enhanced monthly cashback rebates to help offset fuel costs during this period.

These enhancements are designed to provide additional support on top of fuel vouchers.

Rising fuel prices

Since the U.S.-Israeli war on Iran began, Brent crude oil prices have fluctuated sharply.

Prices are currently on track for a record monthly rise of nearly 60 per cent, exceeding gains it made during the 1990 Gulf War, according to The Guardian.

On Mar. 31, Singapore's Energy Market Authority (EMA) said that fuel prices are likely to stay elevated in the near term due to widespread disruptions to oil and natural gas production caused by the conflict.

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