As the price gap between petrol and CNG has narrowed, Prime Taxis will roll out its first batch of eight-seater petrol cabs at the end of the month.

Twenty auto 1.5-litre Honda Freed models will hit the streets, with a flag-down rate of $3.50.

And five-seater Toyota petrol cabs are also in the pipeline, revealed Mr Neo Nam Heng, Prime Taxis' managing director, who plans to revolutionise the diesel-dominated industry.

He told my paper: "The 1.5-litre Freed is more fuel-efficient than older 3-litre diesel taxis. Passengers can also expect quieter and smoother rides."

Petrol prices have fallen over 18 per cent from the year's high, compared to CNG's 5 per cent drop. At Smart Energy CNG pumps at Mandai, CNG is now $1.64 per kg, while 95-octane petrol is $1.846 a litre.

In August, Smart Group gave extra fuel rebates to unhappy CNG-taxi drivers who complained about high CNG prices.

An advantage for Prime Freed cabbies is that they can avoid the long queues at Singapore's two CNG stations at Mandai and Jalan Buroh. Prime operates about 400 bi-fuel taxis.

However, local cab companies said the 30-cent fuel surcharge will stay-until market diesel prices drop to last December's level of $1.19 a litre.

dawnt@sph.com.sg

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