Singapore — Following the increase in bus and train fares, experts highlighted that this could further increase in the next fare review.
Beginning Dec 26, bus and train fares will increase by 2.2 per cent, said the Public Transport Council (PTC) on Wednesday (Nov 3).
Adults will have to pay fares by card that are three to four cents higher and one cent higher in concessionary fares for seniors, students, people with disabilities and low-wage workers.
PTC noted that prices for cash fares, single trip tickets, travel passes and monthly concessions would not be changed.
Covering about 75 per cent of public transport journeys for adults, a route of up to 14.2 km will increase by three cents.
Adult fares for journeys longer than 14.2 km will increase by four cents.
Following its annual fare revision exercise, PTC highlighted a sharp plunge of about 25 per cent in public transport ridership in 2020, resulting in the price hike.
The agency noted that it recognises the “difficult economic circumstances” faced by Singaporeans due to the Covid-19 pandemic.
“We seek commuters’ understanding that it is not possible to keep deferring fare increases as they are needed to support the rising operating costs, such as energy and wages, for our public transport system,” said PTC chairman Richard Magnus.
“Lower fare revenue with higher operational costs cannot continue indefinitely,” he added.
According to Singapore University of Social Sciences professor Walter Theseira, the fare review did not include the implications of surging energy costs, which the world is currently facing.
“The fare review exercise is based on lagging indicators. What has been happening over the last few months is not considered in the fare review formula, which is based on changes in the previous year,” he said in a Straits Times report.
Ridership and cost of operations due to safe management measures will influence fare price adjustments in the next one or two years, added National University of Singapore Associate Professor Raymond Ong.
“I would consider this year as a one-off event where everyone in Singapore is trying to adjust to the new normal, and it was not prudent to have a huge fare increase,” he noted.
Assoc Prof Ong said that the current fare adjustment formula is “ill-suited for short term shocks” like the Covid-19 pandemic.
“Disruptions in technologies, the movement towards sustainable energy sources and electric buses or even learning to live in the new normal may warrant a need for a more robust fare revision formula,” he added.
Reports noted that the maximum allowable fare adjustment in this year’s review is 2.2 per cent, taking into account core inflation, energy prices, productivity, and network capacity.
PTC enforced the full 2.2 per cent increase to mitigate the rising costs of operating public transport services.
“In every fare adjustment, the PTC judiciously balances different considerations to ensure the quality and financial sustainability of our public transport system while trying its best to cushion the impact on commuters,” said Transport Minister S Iswaran in a Facebook post on Wednesday.
“The PTC will continue to do its best to safeguard commuters’ interest while ensuring a financially sustainable public transport system,” he added. /TISG
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