Ferries travelling between Singapore and Batam implement fuel surcharges amid rising oil prices

Passengers travelling by ferry between Singapore and Batam in Indonesia will have to pay an additional fuel surcharge from Thursday (March 12) due to higher oil prices. 

Conflict in the Middle East has led to volatile oil prices, and ferry operators like Horizon Fast Ferry, Batamfast and Majestic Fast Ferry have implemented such fuel surcharges to combat higher operational costs.

All passengers on trips from Singapore to Batam will have to fork out a $6 surcharge per ticket, regardless if their tickets were purchased prior to March 12 or from the effective date onward. 

Meanwhile, trips from Batam to Singapore will be subject to a surcharge of IDR65,000 (S$4.92). 

Additionally, Batamfast will also be charging passengers travelling to Desaru Coast and Pengelih, locations in Malaysia, $12 and $6 respectively. 

In a statement on Thursday, Horizon Fast Ferry said that the fuel surcharge is "necessary to offset rising operational costs while ensuring the continued delivery of safe, reliable, and efficient services". 

Majestic Fast Ferry also said that the "decision is made with reluctance", but is needed to help cover rising fuel costs. 

Both operators said that they will continue to monitor the fuel price situation closely and adjust the surcharge accordingly, in line with prevailing conditions. 

Oil prices on the rise

Global oil prices have surged as conflict in the Middle East persists and Iran's military command warned that the world should be prepared for oil to hit US$200 a barrel. 

Petrol pump prices in Singapore have also risen, with China-headquartered Sinopec raising its prices for the fourth day in a row on Thursday despite advice from Singapore's consumer watchdog to "exercise restraint" in raising prices pre-emptively.

Minister for Manpower Tan See Leng, who is also Minister-in-charge of Science and Technology, on Thursday also cautioned Singaporeans to "expect electricity prices to increase in the coming months" as the country imports all the natural gas needed to fuel 95 per cent of its electrical generation needs. 

Dr Tan said that Singapore has "multiple lines of defence" to protect its energy security, but that households and businesses should also do their part in conserving electricity and utilising energy-efficient appliances. 

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dana.leong@asiaone.com