Adult card fares will increase by 4 to 5 cents (4 cents increase for distance up to 8.2km). Can PTC share some examples of journeys which span 8.2km?
Some examples are as follows:
How is the fare adjustment quantum for 2022 fare review exercise calculated?
The 2022 maximum allowable fare adjustment quantum is calculated using a fare adjustment formula that takes into account the year-on-year change in core Consumer Price Index, Wage Index and Energy Index, the Network Capacity Factor and Productivity Extraction. For 2022, the PTC decided to apply the same principle as 2021 and continue to exclude the NCF from the computation of this year's fare adjustment quantum. Please see table below.
Although the maximum allowable fare adjustment quantum was 13.5%, given cost of living concerns, PTC decided to implement a lower 2.9% fare increase for FRE 2022. The remaining 10.6% quantum will be carried over to future exercises.
There was already a fare increase last year. Why did the Public Transport Council (PTC) decide to increase fares again in this year's exercise?
The PTC recognises Singaporeans' concerns over increasing costs of living and the impact of rising inflation. Amidst rising costs and economic volatility, there is also a need to ensure that public transport continues to be reliable, convenient and affordable for Singaporeans.
The Council therefore has to strike a delicate balance between fare affordability for our public transport commuters and financial sustainability of the public transport system. According to the fare adjustment formula, the maximum allowable fare adjustment quantum was 13.5%.
PTC decided to implement 2.9% of the fare quantum and carry over the remaining 10.6% to the future fare review exercises. Adult card fares will increase by 4 to 5 cents per journey depending on distance travelled. The increase in concession card fares will be capped at 1 cent per journey to keep fares lower for students, senior citizens, lower-wage workers and persons with disabilities.
This means half of Singaporeans will see at most a 1 cent fare increase if they pay per journey. There will be no change to the prices of monthly concession passes and adult monthly travel passes.
While ensuring public transport remains affordable for commuters, we seek commuters' understanding that some fare increase is still necessary to meet rising energy costs, and ensure that we can continue to provide better salaries and training for about 20,000 Public Transport workers.
What is meant by "carry over 10.6% to future fare review exercises"? How will this be done?
PTC takes many factors into account before making a decision on the fare adjustment. These include any carried over quantum from the previous year, the fare formula output for the year, the economic situation at that point, the financial sustainability of the public transport system, and affordability of public transport fares for commuters. The Council seeks to strike a delicate balance between fare affordability for public transport commuters and financial sustainability of the public transport system. This year, the fare formula generated a maximum allowable fare adjustment quantum of 13.5%. To avoid a large fare increase, PTC decided to implement 2.9% of the fare adjustment quantum and defer the remaining quantum of 10.6% to subsequent fare review exercises.
Will commuters expect to see further increase in fares in subsequent years given the carried over and widening revenue-cost gap?
PTC will continue to ensure fares remain affordable for commuters from the average and lower income households, while taking into consideration the financial sustainability of the public transport system. We will continue to monitor the macroeconomic indices and prevailing economic conditions closely, before arriving at the decision for future fare exercises.
Will Public Transport Vouchers (PTVs) be disbursed for the 2022 Fare Review Exercise (FRE)?
The Government will make available 600,000 PTVs valued at $30 each, which can be used to top up fare cards or buy monthly concession passes, to resident households with monthly household income per person of not more than $1600. The PTVs will be disbursed in two stages. In the first stage, households that received a voucher in the 2021 PTV Exercise and continue to meet the income eligibility criteria will automatically receive a PTV notification letter via post and need not apply. The notification letters will be sent to the eligible households by end-December 2022. The second stage of disbursement will start from early 2023. Households that meet the eligibility criteria but did not receive a voucher in the first stage can apply for PTVs online or in person at their local Community Centres/Clubs. Details will be provided later.Will the GST increase cause bus and train fares to increase further?
Bus and train fares are inclusive of GST. The fares that will be implemented on 26 December 2022 will not change when GST increases on 1 January 2023.
