The Public Transport Council (PTC) of Singapore had announced last September 3 that public transport operators may soon increase their fares by as much as 4.3%, as shared in a report by Yahoo! News Singapore.
According to a press release by the PTC introducing the start of the 2018 Fare Review Exercise (FRE), the council explained that the fare increase was derived from a new fare formula.
PTC Studies Public Transport Fare Hike by as much as 4.3%
The new fare formula, which is applicable from 2018-2022, takes into account the carry-over quantum of -3.2 % from last year’s FRE, suggests that the maximum allowable fare adjustment quantum for 2018 FRE is 4.3%, as explained by the PTC.
In line with this, public transport operators are urged to submit their fare applications to the PTC on or before 01 October for review and consideration.
A decision regarding the fare adjustment quantum will be released by the transport council during the last quarter of 2018.
Ultimately, the PTC will keep to its goal of maintaining public transport fares affordable to commuters while, at the same time, ensuring that the public transportation system remains financially sustainable, the council shared.
Furthermore, the PTC shared that they have regulated fares by as much as 8.3% for the last three consecutive years, mainly due to the continued double-digit dip in energy prices.
However, energy prices along in 2017 have rebounded by 26.2% over the past year, and this has been taken into consideration in this year’s fare formula. Additionally, other macroeconomic price indices factored in the fare formula such as the Wage Index (+3%) and the Consumer Price Index (+1.5%) have seen notable increase over the past year.
Also, under the Bus Service Enhancement Programme and the Bus Contracting Model, over 1,000 new buses have been introduced and more than 200 new trains have been added over the past five years to improve Singapore’s public transport network capacity, the PTC shared.
The council has also pointed out that the government has already committed to investing $5 billion to subsidize public bus services, and $4 billion to renew rail operating equipment, as well as an additional $20 billion on new public transport civil infrastructure over the next five years.