Public transport fares could be set to rise by 7% next year, as the Public Transport Council (PTC) began its annual fare review exercise on Tuesday.
The final change in the quantum amount will be announced in the last quarter of this year. If approved, the 7% increase would be the highest fare hike in recent years.
This is the maximum increase that can be allowed under the current fare formula, which came into place last year and will be in place until 2022.
Fares could go up by as much as 10 cents for those who pay for their journeys by card, who make up more than 90 per cent of commuters here.
MRTs and bus operators can submit their revised fare applications to the PTC by September 23. Last year, the fee hike was 4.3 per cent after three years of fare reductions.
According to PTC, the annual fare review is based on a formula that considers a range of factors including:
- Energy prices
- Manpower costs
- Commuter demand
- Enhancements and growth in public transport capacity
Over 1,000 buses and 200 trains have been added to Singapore’s public transport network over the last 5 years.
The Council stated, “The largest contributing factor for the fare formula output quantum is the double-digit increase in energy prices, having rebounded 26.2 per cent in 2017, and 32.3 per cent in 2018.”
Special attention will be given to the section of commuters that depend on concessions. Those looking to save on their daily commute could switch to SimplyGo or use credit cards as the EZ-Link option to earn miles, cashbacks and rebates on the go.
The final decision in the fare adjustments will also take into account the views of commuters and relevant stakeholders, as PTC continues “to strike a fair balance between fare affordability and the financial sustainability of the public transport system”. Stay tuned for the announcement in the last quarter of 2019.