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Public Transport Fares to Increase by 10 Cents for Adults from December 28

 

Starting December 28, 2024, bus and train fares in Singapore will increase by 10 cents per journey for adult commuters, while concession card holders such as students, seniors, and people with disabilities will see a 4-cent increase per journey. There will be no fare changes for commuters using monthly passes. The overall fare hike is 6 percent, which is lower than last year's 7 percent increase.

To support low-income households, the government will provide public transport vouchers worth S$60, up from S$50 last year. The eligibility criteria have been expanded to include households with a monthly income of up to S$1,800 per person, allowing an additional 60,000 households to benefit.

Reasons for Fare Increase:

The Public Transport Council (PTC) attributed the fare increase to factors including core inflation, wage growth in 2023, and energy prices, which have dropped from their 2022 peak. The council’s fare adjustment formula allowed for an increase of 3.3 percent, but a deferred fare increase quantum from previous years of 15.6 percent raised the maximum allowable fare adjustment to 18.9 percent. However, the PTC opted for a 6 percent increase to lessen the impact on commuters.

PTC Chairperson Janet Ang explained that the deferred fare quantum is due to accumulated increases from past years driven by energy price spikes, high inflation, and wage growth. The current fare adjustment will reduce the deferred quantum from 15.6 percent to 12.9 percent for the next review.

To bridge the gap between fare costs and financial sustainability, the government will provide an additional subsidy of S$250 million in the coming year. This subsidy aims to moderate fare increases while accounting for the rising costs of public transport provision.

Both SBS Transit Rail and SMRT Trains had applied for the full 18.9 percent fare increase, citing cost pressures from inflation and slower recovery in ridership. While SBS Transit reported significant losses in its train segment, SMRT Trains recorded an operating profit of S$6.2 million, both with government support.

The PTC advises commuters who frequently use public transport to consider monthly passes to manage expenses. Additionally, there will be no changes in fares for commuters paying in cash.



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