Singapore's taxi industry has undergone profound changes since the first metered taxis appeared in the 1970s. Fare revisions have been shaped by the Public Transport Council (PTC), a statutory board under the Ministry of Transport, which regulates taxi fares to balance affordability for commuters with a sustainable income for drivers. This article traces the major fare revisions, the forces behind them, and how they have transformed the cost of taking a taxi in Singapore.

The Early Years: 1970s to 1990s

Before the 1970s, taxis in Singapore operated on a flat-fee or negotiated basis. The introduction of the taximeter in 1972 brought standardisation. The initial flag-down fare was set at S$1.20 for the first kilometre, with a per-kilometre charge of S$0.20. These rates were set by the government through the then-Registry of Vehicles.

Throughout the 1980s, fares saw small, periodic increases. In 1985, the flag-down fare rose to S$1.50. The fare structure remained simple: a flag-down amount, a distance charge, and a waiting time charge. There were no surcharges for peak hours or locations.

A significant change came in 1998 when the PTC introduced the distance-based fare system that remains the foundation today. The flag-down fare was S$2.40 for the first kilometre, and subsequent kilometres were charged at S$0.20 per 385 metres (later adjusted to 400 metres). This was the first time a flag-down fare breakdown was formally published for public scrutiny.

The 2000s: Surcharges and the First Major Restructuring

The early 2000s saw the introduction of surcharges that are now familiar. In 2001, the PTC approved a peak period surcharge of S$1.00 per trip during morning and evening rush hours. This was designed to incentivise drivers to work peak hours and reduce waiting times for commuters. In 2003, the ERP surcharge was introduced to pass on Electronic Road Pricing costs to passengers. The surcharge was set at the exact ERP rate incurred by the taxi during the trip.

The most dramatic change came in 2004 when the PTC approved a comprehensive fare revision. The flag-down fare was raised from S$2.40 to S$2.80. The distance charge was increased from S$0.20 per 385 metres to S$0.20 per 350 metres, effectively making longer trips more expensive. The time-based waiting charge was also increased from S$0.20 per 30 seconds to S$0.20 per 25 seconds.

By 2007, the PTC introduced the location-based surcharge. Taxis picking up passengers from the Central Business District (CBD) during peak hours attracted an additional S$2.00 surcharge. This was later replaced by the city area surcharge in 2010, which applied to all trips starting within the CBD zone between 5:00 pm and 11:59 pm, regardless of whether it was peak hour.

2010 to 2015: The Era of Incremental Increases

Between 2010 and 2015, the PTC approved a series of smaller, more frequent fare revisions. In 2011, the flag-down fare rose to S$3.00. In 2012, it increased to S$3.20. In 2013, it reached S$3.40. These increases were driven by rising operating costs, including fuel, COE premiums, and rental fees for drivers.

In 2014, the PTC introduced a new peak period surcharge structure. Instead of a flat S$1.00 surcharge, a graduated system was implemented: S$1.00 for trips starting between 6:00 am and 9:30 am, S$2.00 for trips between 6:00 pm and 11:59 pm, and S$3.00 for trips starting between 11:00 pm and 11:59 pm. This was the first time the PTC used time-based tiers to manage demand.

In 2015, the flag-down fare was raised to S$3.40, and the distance charge was adjusted to S$0.20 per 360 metres (from 350 metres). The waiting time charge was also increased to S$0.20 per 20 seconds. These changes were outlined in a detailed distance and time charges document released by the PTC.

The 2016 Landmark Revision: Metered Rates and Surcharges

2016 was a pivotal year. In February, the PTC approved a major restructuring. The flag-down fare was raised from S$3.40 to S$3.70. The distance charge was simplified: the first 10 kilometres were charged at S$0.20 per 360 metres, and beyond 10 kilometres at S$0.20 per 420 metres. This was the first time a long-distance taper was introduced, making very long trips slightly cheaper per kilometre.

The biggest change was the introduction of a midnight surcharge of 50% of the metered fare for trips starting between midnight and 5:59 am. Previously, there was no specific late-night surcharge. This was designed to attract more drivers to work the overnight shift.

The PTC also formalised the ERP surcharge as a pass-through cost, meaning the exact ERP amount was added to the fare. This was published as part of the ERP surcharges taxis guidelines.

In December 2016, the PTC approved a further revision: the peak period surcharge was increased to S$2.00 for trips starting between 6:00 am and 9:29 am, S$3.00 for trips between 6:00 pm and 11:59 pm, and S$4.00 for trips between 11:00 pm and 11:59 pm. The city area surcharge was also raised from S$2.00 to S$3.00.

2017 to 2019: Ride-Hailing Disruption and Fare Freeze

By 2017, ride-hailing apps like Grab and Gojek had captured a significant share of the point-to-point transport market. The PTC, in response, froze taxi fares for two years, from 2017 to 2019. This was an unprecedented move. The PTC stated that the freeze was to allow the industry to stabilise and to prevent further erosion of the taxi's competitive position against private-hire cars, which were not subject to PTC fare regulation.

During this period, taxi operators like ComfortDelGro and SMRT introduced their own app-based booking systems and dynamic pricing features. However, the metered fare remained fixed. The PTC allowed taxi operators to offer discounts and promotions to compete, but the base fare could not be increased.

In 2019, the PTC ended the freeze and approved a modest revision. The flag-down fare was raised from S$3.70 to S$3.90. The distance charge was adjusted: first 10 kilometres at S$0.20 per 340 metres (from 360 metres), and beyond 10 kilometres at S$0.20 per 400 metres (from 420 metres). The waiting time charge was increased from S$0.20 per 20 seconds to S$0.20 per 18 seconds.

The midnight surcharge was also increased from 50% to 75% of the metered fare. The peak period surcharge was raised to S$3.00 for morning peak (6:00 am to 9:29 am) and S$4.00 for evening peak (6:00 pm to 11:59 pm). The city area surcharge remained at S$3.00.

A new Changi Airport surcharge was introduced: S$5.00 for trips starting from Changi Airport between 5:00 pm and 11:59 pm, and S$3.00 at all other times. This was detailed in the airport surcharges Changi guidelines.

2020 to 2022: COVID-19 and Temporary Adjustments

The COVID-19 pandemic caused an unprecedented collapse in taxi demand. In April 2020, during the circuit breaker, the PTC allowed taxi operators to temporarily reduce the flag-down fare to S$3.40 (a S$0.50 reduction) to stimulate demand. This was the first time fares were reduced since the 1970s. The reduction lasted until August 2020, after which the fare returned to S$3.90.

In 2021, as demand recovered slowly, the PTC approved a revision that took effect in January 2022. The flag-down fare was raised to S$4.00. The distance charge was adjusted: first 10 kilometres at S$0.20 per 320 metres (from 340 metres), and beyond 10 kilometres at S$0.20 per 380 metres. The waiting time charge was increased to S$0.20 per 16 seconds.

The midnight surcharge was raised to 100% of the metered fare (i.e., double the metered fare) for trips starting between midnight and 5:59 am. The peak period surcharge was raised to S$4.00 for morning peak and S$5.00 for evening peak. The city area surcharge was increased to S$4.00. The Changi Airport surcharge was raised to S$6.00 for evening peak and S$4.00 at other times.

These increases were justified by the PTC citing rising fuel costs, higher COE premiums, and the need to attract drivers back to the industry after many had left during the pandemic.

2023: The Largest Revision in a Decade

In January 2023, the PTC approved what it called the largest fare revision in a decade. The flag-down fare was raised from S$4.00 to S$4.50. The distance charge was adjusted: first 10 kilometres at S$0.20 per 300 metres (from 320 metres), and beyond 10 kilometres at S$0.20 per 360 metres. The waiting time charge was increased to S$0.20 per 14 seconds.

The midnight surcharge remained at 100% of the metered fare. The peak period surcharge was raised to S$5.00 for morning peak and S$6.00 for evening peak. The city area surcharge was increased to S$5.00. The Changi Airport surcharge was raised to S$8.00 for evening peak and S$5.00 at other times.

The PTC also introduced a new Seletar Airport surcharge of S$5.00 for trips starting from Seletar Airport between 5:00 pm and 11:59 pm, and S$3.00 at all other times. This was covered in the Seletar airport transfers guide.

The PTC estimated that a typical 10-kilometre trip during peak hours would cost about S$14.00, up from S$11.50 before the revision. The revision was met with mixed reactions. Commuters expressed concern about affordability, while taxi drivers welcomed the increase as necessary to cover rising costs.

Current Fare Structure (as of 2025)

As of early 2025, the fare structure remains largely unchanged from the 2023 revision, with no major adjustments announced. The current base fare structure is:

  • Flag-down fare: S$4.50 (first 1 km)
  • Distance charge (first 10 km): S$0.20 per 300 metres
  • Distance charge (beyond 10 km): S$0.20 per 360 metres
  • Waiting time charge: S$0.20 per 14 seconds
  • Midnight surcharge: 100% of metered fare (midnight to 5:59 am)
  • Peak period surcharge: S$5.00 (6:00 am to 9:29 am), S$6.00 (6:00 pm to 11:59 pm)
  • City area surcharge: S$5.00 (5:00 pm to 11:59 pm for trips starting in CBD)
  • Changi Airport surcharge: S$8.00 (5:00 pm to 11:59 pm), S$5.00 (other times)
  • Seletar Airport surcharge: S$5.00 (5:00 pm to 11:59 pm), S$3.00 (other times)
  • ERP surcharge: Exact ERP amount incurred

Taxi operators also offer app-based booking fees, which are separate from the metered fare. For example, ComfortDelGro's app charges a booking fee of S$2.30 to S$4.80 depending on demand. These fees are not regulated by the PTC.

For a detailed comparison of how taxi fares stack up against private-hire car pricing, refer to our Grab vs Gojek pricing analysis and the Tada vs Zig review.

Key Drivers of Fare Revisions

Several factors have consistently driven fare revisions over the decades:

  1. Operating costs: Fuel prices, vehicle maintenance, COE premiums, and taxi rental fees are the primary costs for drivers and operators. When these rise, the PTC typically approves fare increases.
  2. Driver income: The PTC aims to ensure that taxi driving remains a viable livelihood. Fare revisions are often timed to prevent driver shortages.
  3. Inflation: General price increases in the economy are reflected in periodic fare adjustments.
  4. Competition from ride-hailing: The rise of Grab, Gojek, and Tada has forced the PTC to consider the competitiveness of taxis. Fare freezes and the introduction of dynamic pricing features by taxi operators are direct responses.
  5. Demand management: Surcharges for peak hours, city areas, and airports are designed to balance supply and demand. Higher surcharges attract more drivers to high-demand times and locations.

Comparing Taxi Fares with Ride-Hailing

Today, commuters have a choice between metered taxis and app-based private-hire cars. The pricing models differ significantly. Taxis use a regulated meter with fixed surcharges. Private-hire cars use dynamic pricing that fluctuates in real time based on demand and supply.

For short trips during off-peak hours, taxis are often cheaper. For example, a 5-kilometre trip at 2:00 pm might cost S$8.00 in a taxi versus S$10.00 on Grab. However, during a heavy rainstorm or after a major event, Grab's price can surge to S$20.00 or more for the same trip, while the taxi fare remains capped by the meter.

For a full comparison of booking methods, see our article on street hail taxi vs app.

The PTC's role is limited to metered taxis. Private-hire cars are regulated by the Land Transport Authority (LTA) under the Private Hire Car Driver's Licence scheme, but their fares are not regulated. This asymmetry has been a point of debate. Some industry observers have called for the PTC to relax fare regulations to allow taxis to compete more effectively with dynamic pricing. Others argue that fare regulation protects commuters from price gouging.

Future Outlook

Looking ahead, the PTC has indicated that it will continue to review fares annually. The trend is toward more granular surcharges and possibly the introduction of dynamic metered fares, where the meter rate could vary by time of day or demand level. Such a system would represent a fundamental shift from the current fixed-meter model.

In 2024, the PTC launched a public consultation on the future of taxi fare regulation. Proposals included allowing taxi operators to set their own flag-down fares within a band, and introducing a congestion surcharge for the CBD zone during peak hours. No decisions have been announced as of early 2025.

Another development is the integration of taxi booking into ride-hailing apps. ComfortDelGro's app now shows both taxi and private-hire options with upfront pricing. This blurs the line between the two services. For tips on navigating these options, see our save money on taxis Singapore guide and budget tips for daily commute.

Related articles

  • The Complete Guide to Taxis and Ride-Hailing in Singapore
  • Flag-Down Fare Breakdown
  • Distance and Time Charges
  • Peak Period Surcharges
  • Airport Surcharges Changi
  • Surcharge Comparison All Apps