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Acting Minister for Transport Jeffrey Siow announced on Tuesday that the government would temporarily co-fund cost increases for certain essential bus services, as part of S$1 billion worth of support measures for businesses and households.<\/p>\n
On Thursday, the government said it will provide three months of support \u2013 equivalent to 13 per cent of fare revenues \u2013 to transport operators serving school children, people with disabilities, some seniors and patients.<\/p>\n
Fares may still have to rise if fuel prices remain elevated beyond the support period, it said.<\/p>\n
For operators like wheelchair-accessible transport firm Vimo Services, the damage from rising fuel costs has already been severe.<\/p>\n
Fuel expenses for its 18 vehicles have jumped 140 per cent \u2013 S$18,000 in the second half of March, compared with S$7,500 before that.<\/p>\n
\u201cWe have seen zero profit over the past month,\u201d said its founder Victor Teo.<\/p>\n
To keep afloat, he had to do away with a S$2 discount for wheelchair transport services and introduce a S$3 surcharge per ride in April.<\/p>\n
\u201cOur customers have been understanding of these changes,\u201d said Mr Teo. \u201cWe intend to remove the surcharge once fuel prices return to an acceptable level, as we aim to keep this essential service as affordable as possible.\u201d<\/p>\n
He has increased rebates for frequent users from 5 per cent to 10 per cent.<\/p>\n
Other firms reported smaller increases in fuel expenditure.<\/p>\n
Shalom Medcare, which operates 10 to 15 trips a day for seniors and persons with disabilities, said its fuel expenses have surged by about 25 per cent since the start of the year, with overall operating costs rising by 15 to 20 per cent.<\/p>\n
The Handicaps Welfare Association, which has 31 high-roof vans and three minibuses, saw diesel costs rise by about 30 per cent across its fleet.<\/p>\n
Both firms say they are absorbing the cost increases for now instead of passing them to clients.<\/p>\n
\u201cWe strive to keep our rates among the most competitive in the market because many of our clients are on fixed incomes or rely on financial assistance,\u201d said Mr Javier Chan,\u00a0operations manager at Shalom Medcare.<\/p>\n<\/div>\n