SMRT Taxis will levy a fuel surcharge of 30 cents per trip for all taxi trips from July 26.
The fuel surcharge will apply to all flag down trips, as well as call centre and advanced bookings, SMRT said in a press release on Saturday.
SMRT's move came after ComfortDelGro implemented the surcharge on Thursday.
At that time, SMRT and Prime Taxis, said they have not yet decided on whether to go ahead with the surcharge.
The other three operators - Premier Taxis, Trans-Cab and Smart Taxis - have said they will follow ComfortDelGro's move to implement a surcharge.
SMRT said the fuel surcharge is a temporary measure and the additional amount will be pocketed by the cabbies. It said the surcharge 'will be removed when diesel price decreases to $1.19 per litre, which was the market price in December 2007'.
SMRT said it has put in place various competitive schemes to help taxi drivers cope with rising operating costs. This includes rent-free-days and diesel subsidies and rebates, which SMRT claims amount to more than $10 million each year.
SMRT said it will also be passing on the rebate from the Land Transport Authority's road tax reduction to the cabbies. This amounts to $180 per year for each hirer, it said.
