SINGAPORE'S second-largest taxi operator SMRT said in a statement on Friday that it will raise taxi fares from Dec 21, four days after leading rival ComfortDelGro announced it would do the same.

SMRT, which has 3,000 taxis to ComfortDelGro's fleet of 15,000, said the hikes are to mitigate higher operating costs due to rising fuel prices.

It said the changes include raising minimum starting fares to S$2.80 ($1.94) and the tripling of a surcharge to S$3 for taxis entering Singapore's downtown area after 5.00 pm, in line with the hikes made by ComfortDelGro.

Inflation in Singapore hit a 16-year high in October and the government has forecast it could reach 5 per cent in the first quarter next year.

Taxi firms have been hurt by high oil prices , which traded above US$92 (S$133) a barrel on Friday after a record near $100 last month. -- REUTERS