PTC Cuts Fares for Commuters
PTC grants full 1.9% fare reduction
1. The Public Transport Council (PTC) has concluded the 2015 Fare Review Exercise. Guided by the fare adjustment formula recommended by the Fare Review Mechanism Committee in 2013, the PTC has decided to grant the maximum allowable fare reduction of 1.9%.
2. Adult card fares will be lowered by 1 to 4 cents, depending on the travel distance. Students and senior citizen concessionary card fares will be reduced by 1 to 2 cents. The prices of all monthly concession passes and monthly travel passes, as well as cash fares and single trip ticket fares, will remain unchanged.
Key Factors that PTC Considered
3. The PTC tracks closely key factors that affect the cost of providing public transport. Our role is to keep fares for commuters affordable while ensuring the sustainability of Singapore’s public transport system.
4. Our assessment showed that while wages and other operating expenditure had gone up in 2014, energy prices had fallen substantively. This allows fares to be adjusted downward in this Fare Review Exercise.
5. We have timed the fare reduction to coincide with the opening of the Downtown Line Stage 2 (DTL2) on 27 December 2015, so that we need not make changes to our fare system twice in a short duration (once for the launch of DTL2, and a second time a short while later to take into account the fare adjustment resulting from this Fare Review Exercise). This will also minimise confusion for commuters.
6. The PTC examined ridership trends, factors impacting the fare formula, and inputs from the public transport operators. One key consideration for us was that commuters who experienced higher fare increase in the last exercise should now see a larger reduction to their fares. In the same vein, the prices of all monthly concession passes and monthly travel passes are kept unchanged, as these had been insulated from the last two fare increases.
7. Another key consideration was to benefit as many commuters and groups as possible. Various commuter groups such as Senior Citizens, Students, Lower-Wage Workers and Persons with Disabilities will continue to receive assistance and support. On the latter two groups, we note that the Government will also be lowering their concessionary card fares. This will be announced separately by the Ministry of Transport.
8. While fares have been cut for commuters, we are equally concerned with the viability of the public transport system. In this regard, we note that the expansion of the network and raising of service quality to boost ridership, will help increase the revenue of the operators.
9. The maximum allowable fare reduction of 1.9% is calculated based on a transparent formula. Information on the fare review mechanism and formula is publicly available. The PTC’s role is to decide on the right amount of the quantum to be granted. The PTC will continue to play its role to keep public transport affordable and sustainable.
10. Mr Richard Magnus, Chairman of the PTC said,
“The PTC is monitoring changes on the ground very closely. We will strive to contribute meaningfully to the overall public transport ecosystem.
This year’s decision to reduce fares for commuters is in line with the negative fare quantum yielded by the fare adjustment formula due to lower energy prices. We have decided to grant the full quantum of reduction to benefit commuters and keep fares
The PTC’s authority and autonomy are undergirded by its independence and flexibility to regulate in the best interest of the overall public transport system. We are accountable to the Government and our citizens to contribute towards an efficient and sustainable public transport system that Singaporeans can be proud of.”
Annex A: Factsheet for 2015 Fare Review Exercise
Annex B: Approved Bus and Train Fares
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