The Public Transport Council (PTC) has concluded its annual fare review exercise (FRE) and announced on Wednesday (Oct. 12) that it will allow a 2.9%
The Public Transport Council (PTC) has concluded its annual fare review exercise (FRE) and announced on Wednesday (Oct. 12) that it will allow a 2.9% increase in public transport fares.
This will result in an increase of 4 to 5 cents for adult fares, depending on the distance traveled. For journeys 8.2km or shorter, fares will go up by 4 cents, while for longer journeys, they will increase by 5 cents. Tan Kim Hong, Chief Executive of PTC, mentioned that 54% of adults’ journeys fall under the shorter distance category.
Concession Fare Increase Capped at 1 Cent For concession fares, the increase is capped at just 1 cent. Monthly concession passes, adult monthly travel cards, and bus cash fares will remain unchanged.
The new fare structure will take effect on Dec. 26, 2022. Here are the specific fare adjustments for various categories: Image via PTC.
Government to Subsidize Additional S$200 Million The total fare adjustment quantum calculated for this year’s exercise is 13.5%, the highest since 2005, according to Tan. Both SBS Transit and SMRT had applied for a 13.5% adjustment due to increased operational costs, rising inflation, and manpower shortages.
With the PTC approving only a 2.9% fare increase, the remaining 10.6% will be deferred for future reviews. The government will subsidize an additional S$200 million in 2023 to offset costs, on top of the existing annual public transport subsidies of more than S$2 billion.
Energy Index Contributed 11.7% to Fare Quantum The 13.5% quantum was calculated using the formula that PTC adopted in 2018, which takes into account factors such as the price index, wage index, and energy index. The energy index contributed 11.7% of the total, reflecting the impact of high global oil and gas prices.
NCF Excluded This Year The Network Capacity Factor (NCF), introduced in 2018 to track changes in operating costs due to capacity adjustments, was excluded this year. The PTC explained that ridership in 2021 was similar to 2020 due to the pandemic, and applying the NCF during such exceptional periods would lead to disproportionately high fare increases.
Revenue Impact and Support for Lower-Income Households The fare adjustments are expected to generate an additional S$7.4 million for SBS Transit and S$15.4 million for SMRT. Bus services and the Thomson-East Coast Line will bring in another S$27.5 million for the Land Transport Authority.
Both SBS Transit and SMRT will contribute a combined total of S$3.44 million to the Public Transport Fund, which will help 600,000 lower-income households with Public Transport Vouchers worth S$30 each.
Fare Increases Necessary to Meet Operational Costs Janet Ang, Chairperson of PTC, acknowledged public concerns about rising living costs but emphasized the importance of maintaining reliable, convenient, and affordable public transport. She explained that fare increases are needed to cover rising energy costs and ensure better salaries and training for the country’s 20,000 public transport workers.
Ang reiterated that public transport fares remain affordable, noting that the PTC measures affordability using the second quintile income group (21st to 40th percentile) as a benchmark.
Top image via Public Transport Council.
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