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SINGAPORE: Prime Taxi bucked the trend this week when it announced its flag-down fares will not be raised for three months.
But come 1 January, meter rates and city area surcharges will go up.
Prime Taxi drivers said the company's decision is due to the fact that overheads are still manageable as rental rates of Prime's taxis are 30 percent below the market average.
Moreover, Prime's fleet of 100 taxis run on compressed natural gas (CNG) which costs 5 cents for every kilometre, compared to diesel which costs an average of 12 cents per kilometre.
But despite the lower costs, there are practical reasons for the low take-up of CNG cars, which make up less than 1 percent of the 23,000 taxis in Singapore.
Tan Soon Chye, General Manager of Taxi Division, Prime Taxi, said: "Currently, if they want to refuel CNG they will need to go to Jurong Island. However, this will cease to be a problem come January next year when more CNG kiosks are set up in Singapore."
Nonetheless, the company does not think there would be more CNG taxis on the roads anytime soon.
"99 percent of the taxis running on the road now are powered by diesel. In order to convert to CNG, they need a substantial amount of money and time," said Mr Tan.
Prime said it is raising meter rates and city area surcharges – in line with ComfortDelGro – to attract its drivers into the central business district during peak hours.
- CNA/so
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