SINGAPORE: After three consecutive years of fare decreases, public transport operators could increase fares by up to 4.3 per cent, as bus and train capacity is ramped up. The Public Transport Council (PTC) announced this on Monday (Sep 3) as it begins the 2018 fare review exercise, which is based on a new formula that takes into account commuter demand and enhancements and growth in public transport capacity. The PTC said that the maximum allowable fare adjustment quantum to be considered is 4.3 per cent, after taking into account a 3.2 per cent reduction rolled over from the 2017 fare review exercise. Last year, the PTC considered a 5.4 per cent fare reduction based on the old formula, but implemented only a 2.2 per cent cut. The operators may submit their fare applications to the PTC by Oct 1. "The PTC has reduced fares by a total of 8.3 per cent for the previous three consecutive years, largely due to the continued double-digit dip in energy prices," said PTC.
Last year's energy prices, which will be factored in this year's fare formula, rebounded by 26.2 per cent over the previous year. Meanwhile, other macroeconomic price indices in the fare formula have also increased over the past year.
The wage index, which is a proxy for the wage growth of public transport workers including bus captains and rail staff, went up by 3 per cent. The core consumer price index also rose by 1.5 per cent - the highest increase in three years, said PTC. The new fare formula includes a new component called the Network Capacity Factor (NCF) of 3 per cent, which the council said "balances commuter demand and public transport capacity enhancements and reflects the effort to provide commuters with more convenient and less crowded rides over the last year". Read more at https://www.channelnewsasia.com/news/singapore/public-transport-operators-may-increase-fares-by-up-to-4-3-10680038