ComfortDelGro does not intend to raise rentals following this fare adjustment. In fact, the company has been helping its drivers through diesel subsidies and other benefits through the years. The subsidies and benefits, which amounted to $73 million last year, continue to be extended this year.

The move to address the demand and supply inequalities was applauded by the taxi associations. Mr Nah Tua Bah, President of the Comfort Taxi Operators' Association said: "Commuters have been complaining about not being able to get a taxi during peak hours in the city area. This is partly because drivers who have driven out of the city are not likely to want to drive all the way back and incur extra costs when they can just look for a customer where they are. The higher city area surcharge will act as an incentive for drivers to make that trip back into town."

Mr Robin Ng, President of the CityCab Operators’ Association, added: "ERP charges these days are getting higher and higher and drivers have said that it does not make sense for them to pay the ERP charge just to go into town to get a customer when they can get one outside without paying a cent. Our drivers are therefore very happy that the company is extending the ERP rebate to those who cannot find a fare within 15 minutes of entering the CBD. This will definitely help."

Mr Tan Soon Hua, 48, a taxi driver, welcomed the fare changes. He said: "The cost of driving a taxi has gone up and this fare increase will certainly help relieve some of my costs. I think the company’s decision to offer us ERP rebates is a good one and I, for one, will be more motivated to drive back into the city with the rebate."