Bus & Train Fares Will Increase From 26 Dec To Support Rising Operating Costs
Most of us get around Singapore via our extensive network of buses and trains every day, which makes our public transport an indispensable part of our lives.
On Wednesday (3 Nov), the Public Transport Council (PTC) said bus and train fares will increase by 2.2% from 26 Dec.
This translates to a price hike of 3 to 4 cents per journey for adult commuters. Those using concessionary fares will see a 1 cent increase.
Prices for cash fares, single trip tickets, monthly concessions, and travel passes will remain unchanged.
Bus & train fares increase by 3-4 cents per journey
On Wednesday (3 Nov), the PTC announced that there will be a price hike of 2.2% for public transport services.
This would mean that adult fares for journeys up to 14.2km will increase by 3 cents.
For longer rides beyond that distance, there will be a 4 cents increase.
The fare hike will be capped at 1 cent per journey for concessionary groups.
Prices will remain unchanged for commuters on monthly concession or travel passes.
Here’s a summary of all the changes that will take effect from 26 Dec:
Will help mitigate operating costs
The PTC acknowledges the pandemic has made many Singaporeans’ economic circumstances difficult.
For this reason, they did not increase bus and train fares during last year’s Fare Review Exercise (FRE) to help Singaporeans cope.
The fare adjustment of 4.4% last year was carried over to this year’s exercise.
According to the current fare formula – which accounts for inflation, energy prices, productivity, and network capacity – the maximum allowable fare adjustment this year should be -2.2%.
PTC granted the full 2.2% increase to help mitigate the costs of running public transport services.
Operators have been facing rising cost pressures, especially from energy prices which have risen over 30% in the first half of 2021.
Due to the fall in ridership, PTC noted that the fare increase could have been up to 60 cents.
But they excluded the network capacity factor (NCF) for 11 out of the 12 months in 2020. This is due to the exceptional circumstances of Covid-19.
NCF is a measure of the cost of expanding public transport capacity relative to ridership.
Vouchers will be given to eligible households to cope with adjustment
Referring to the 1 cent increase in price for concessionary groups, PTC says around 2 million commuters, which amounts to about half of all Singaporeans, continue to enjoy up to 70% subsidised fares.
Despite this, the council recognises the need to provide support for households to cope with the fare adjustment.
PTC says the government will tap on the Public Transport Fund to provide 600,000 Public Transport Vouchers (PTVs) worth $30 to eligible households.
Under this year’s fare adjustment, the government will collect about $34.2 million per year in fare revenue. SBS Transit Rail will see an increase in annual revenue of $4.6 million and SMRT will see $10 million.
Both operators will be mandated to contribute about $2.23 million to the Public Transport Fund to share the gains with commuters.
Glad PTC is keeping fares reasonable
A fare hike is not something any of us will rejoice over.
However, given that public transport has continued to run throughout the pandemic at almost its usual frequencies, operators have also taken on significant costs.
We’re glad the PTC continues to look out for Singaporeans and maintain a high standard of public transport whilst keeping fares reasonable.
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Featured image by MS News.
