PTC begins review of fare adjustment formula

Yahoo Singapore file photo.

The Public Transport Council (PTC) has started its review of the public transport fare adjustment formula and mechanism, the council announced on Wednesday (5 April).

By reviewing the effectiveness of the fare adjustment formula and mechanism, the PTC will propose improvements in consideration of changes to the public transport industry. These changes include a move to a government contracting model for the public bus industry.

The PTC said it would focus on maintaining a good balance in keeping public transport fares affordable while ensuring the financial viability of the public transport system. It said it would also be sure to adequately take in the views of all stakeholders.

The review comes amid reports in the media that PTC chairman Richard Magnus had hinted at the possibility of a hike in fares when he wrote in a blog post on 5 April that service improvements “come at a cost”. Magnus added, “There will need to be equitable cost sharing among commuters, taxpayers and public transport operators.”

Transport Minister Khaw Boon Wan also commented on transport fares, saying in Parliament last month that “fares have not kept up with rising costs”, which was unsustainable. Khaw also noted that the “PTC cannot always bring good news, sometimes they have to adjust fares upwards”.

 

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Unsustainable for transport costs to rise faster than fares: Khaw Boon Wan