Singapore's transportation sector faces severe pressure as diesel prices surge past S$4 per liter, nearly doubling operating costs for businesses dependent on commercial vehicles.
Farid Khan, CEO of Singapore Cab Booking, reports losing 20 freelance minibus drivers this month alone as rental costs became unaffordable. His company's diesel expenses have nearly doubled, pushing operating costs up 40 to 60 percent monthly.
Major fuel retailers charge S$4.13 per liter for diesel versus S$3.40 for 95-octane petrol. The crisis stems from crude oil supply disruptions caused by the ongoing US-Israel conflict with Iran.
Logistics companies report massive cost increases. SB Express Logistics sees diesel expenses jump over 110 percent across its 60-vehicle fleet, introducing S$2 surcharges per delivery while struggling with customer pushback.
Private bus operator Westpoint Transit faces 150 percent higher diesel costs, though its 65-bus fleet maintains steady demand from corporate transportation needs.
Companies explore alternatives including route optimization and electric vehicle adoption, though immediate transitions remain limited for commercial diesel operations.