Fare adjustment formula and mechanism

Find out how we review fares, with a formula that considers wages, energy costs and the general costs of running public transport and ensures that any fare adjustments protect commuter interests and keep pace with cost changes.

Last updated 27 November 2025

Since 1998, PTC has been using a fare adjustment formula to determine the maximum amount of fare changes that can be granted each year during the annual fare review exercise.

The formula takes into account wages, energy costs and the general costs of running the public transport.

Through the formula, PTC puts a cap on the amount fare changes that can be granted each year, ensuring that fare adjustments – if any – are reasonable and protect the interests of commuters and keep pace with cost changes in the industry.

PTC also reviews the fare adjustment formula, typically once every five years, to ensure that it remain relevant as the public transport landscape evolves.

Updated fare adjustment formula

The Public Transport Council has just completed the latest review in April 2023. Read the 2023 Fare Adjustment Formula & Mechanism Review and Fare Adjustment Formula and Mechanism Review Report 2023 [PDF, 4.2 MB]. The updated fare adjustment formula below is valid from 2023 to 2027.

Breaks down how fares are adjusted using core inflation, wages, energy costs, productivity, and network growth.

Infographics on how fares are adjusted using core inflation, wages, energy costs, productivity, and network growth. [PDF, 49 KB]

Deferred fare adjustment mechanism

The fare adjustment formula has a Deferred Fare Adjustment mechanism which allows PTC to take into consideration the prevailing social and economic conditions during the annual Fare Review Exercise. This means that the fare adjustment quantum that can be deferred, either in part or in full to future fare review exercises to keep fares affordable.

This flexibility has enabled the PTC to shield commuters from fare increases during extenuating circumstances, such as the COVID-19 pandemic in 2020, or large fare adjustment quantum due to spikes in energy prices.