Grab to raise temporary fuel surcharge to 90 cents from April 7 to May 31 amid price volatility

Passengers will see a $0.90 line item named "fuel surcharge" in their receipt
Grab to raise temporary fuel surcharge to 90 cents from April 7 to May 31 amid price volatility
Grab will temporarily raise its fuel surcharge to $0.90 between April 7 and May 31 to help its driver-partners cope with the ongoing fuel price volatility.
PHOTO: AsiaOne/Rauf Khan

Ride-hailing operator Grab will implement a temporary adjustment, adding 40 cents to its existing 50-cent fuel surcharge, to help its drivers cope with the ongoing fuel price volatility.

This was announced on Tuesday (March 31) as Grab introduced a $1.1 million driver-partner support package to help drivers cope with increased daily operating costs.

Grab said its existing 50-cent "driver fee", introduced during earlier periods of elevated fuel prices, will be renamed as a single "fuel surcharge" line item.

This means that its passengers will now see a 90-cent line item named "fuel surcharge" in their post-trip receipt.

The move, which will entirely go to Grab's driver-partners, does not apply to standard and metered taxi rides.

A Grab spokesperson said: "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. 

"Fuel costs remain high and unpredictable, and while Grab is significantly increasing our support for driver-partners, the broader volatility means that a temporary adjustment to fares is still necessary."

As part of its $1.1 million support package, the monthly rebate programme for April will be enhanced to provide its driver-partners with extra bonuses and rebates to help them offset the sudden rise in fuel expenses.

"These enhancements are designed to provide additional relief on top of fuel vouchers, which were introduced as immediate relief for eligible driver-partners when fuel prices first spiked in March," Grab said.

The initiatives, which were developed in consultation with the National Private Hire Vehicles Association (NPHVA), was welcomed by the association's adviser Yeo Wan Ling.

Yeo, a MP for Punggol GRC and NTUC assistant secretary-general, said: "Private hire drivers have been struggling to cope with higher fuel costs for weeks, which has direct impact on their earnings and affected their livelihoods.

"We have called on platform operators to step up support for drivers during this period and welcome this latest update from Grab."

She added that NPHVA will continue to monitor conditions closely.

Fuel prices, which have been on the rise for about three weeks, saw a respite on March 25 as Shell became the first company here to drop its posted prices for petrol. 

Its move was followed by other major fuel companies here the next day.

However, the respite may still be brief as the situation in Middle East remains very volatile.

On Tuesday, Brent crude, the international standard, rose to nearly US$113 at the time of this article's publication.

It is expected to trend upwards later in the day as US President Donald Trump threatens to "obliterate" Iran energy and oil plants amidst reports that a Kuwait-flagged oil tanker was hit by an Iranian strike.

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