Public transport fares are set to rise come 26 December 2022. The new development comes as the Public Transport Council (PTC) has announced on 12 October 2022 that it will be granting a fare increase of 2.9% in its 2022 Fare Review Exercise.
In practice, this means that adult card fares will increase by $0.04 for journeys less than 8.2km, while adult card fares will increase by $0.05 for journeys more than 8.2km.
Adult card fares are set to rise $0.04 for journeys less than 8.2km, and $0.05 for those longer than 8.2km The increase for concession card fares, meanwhile, has been capped at $0.01 per journey to keep fares lower for students, senior citizens, lower-wage workers, and persons with disabilities.
There will be no change to the prices of monthly concession passes and adult monthly travel passes.
The council states that this increase was adopted in order to balance both the need to keep fares affordable for commuters facing rising inflation, as well as to ensure the sustainability of Singapore's public transport system amidst rising costs.
It states that the recent energy crunch has caused energy prices to increase by 117%, while the transport operators have also been faced with increased manpower costs.
These factors, according to the PTC's fare adjustment formula, mean this year's maximum allowable fare adjustment quantum was 13.5%. However, the PTC has opted stay the remaining 10.6% of this year's fare adjustment quantum, thanks to the Government's provision of an additional subsidy of about $200 million in 2023. The remaining fare adjustment quantum will be carried over to future FREs.
Increased energy and manpower costs meant the maximum maximum allowable fare adjustment quantum for this review exercise was 13.5% Additionally, the Network Capacity Factor has been excluded in the computation of this year's fare adjustment quantum, as it was in 2021, as public transport ridership rates have yet to recover to pre-2021 levels following the COVID-19 outbreak. The PTC states that public transport ridership as of September 2022 is at 80% of pre-pandemic levels.
Additionally, the PTC has decided that SBS Transit and SMRT Trains should respectively contribute 5% and 20% of their expected increase in revenue to the Public Transport Fund. This equates to a total of $3.44 million ($0.37 million and $3.07 million respectively).
The Government will again make available a total 600,000 Public Transport Vouchers worth $30 each from the Public Transport Fund. These vouchers will further ensure affordable public transport costs for lower to lower-middle income households.
The current public transport fare adjustment formula and mechanism are also currently under review by the PTC. The council states that this review will be completed next year, and any adjustments applied from the new formula will be applied from the 2023 Fare Review Exercise onwards.
In practice, this means that adult card fares will increase by $0.04 for journeys less than 8.2km, while adult card fares will increase by $0.05 for journeys more than 8.2km.
There will be no change to the prices of monthly concession passes and adult monthly travel passes.
The council states that this increase was adopted in order to balance both the need to keep fares affordable for commuters facing rising inflation, as well as to ensure the sustainability of Singapore's public transport system amidst rising costs.
It states that the recent energy crunch has caused energy prices to increase by 117%, while the transport operators have also been faced with increased manpower costs.
These factors, according to the PTC's fare adjustment formula, mean this year's maximum allowable fare adjustment quantum was 13.5%. However, the PTC has opted stay the remaining 10.6% of this year's fare adjustment quantum, thanks to the Government's provision of an additional subsidy of about $200 million in 2023. The remaining fare adjustment quantum will be carried over to future FREs.
Additionally, the PTC has decided that SBS Transit and SMRT Trains should respectively contribute 5% and 20% of their expected increase in revenue to the Public Transport Fund. This equates to a total of $3.44 million ($0.37 million and $3.07 million respectively).
The Government will again make available a total 600,000 Public Transport Vouchers worth $30 each from the Public Transport Fund. These vouchers will further ensure affordable public transport costs for lower to lower-middle income households.
The current public transport fare adjustment formula and mechanism are also currently under review by the PTC. The council states that this review will be completed next year, and any adjustments applied from the new formula will be applied from the 2023 Fare Review Exercise onwards.
