Channel NewsAsia - Friday, July
11
SINGAPORE: Another round of public transport fare hikes is
likely this year, but commuters can expect the rise to be cushioned
by a new fare structure formula.
One group of commuters who stands to benefit are those who make
multiple transfer journeys.
Currently, a commuter incurs what is called a transfer penalty
every time he boards a new bus. To offset this, the commuter is
given a 25—cent rebate each time he switches from bus to bus, or
bus to train.
But this rebate does not fully offset the jump in fares. To
address this, a distance—based through fare system will be
introduced by 2009.
But for now, Singapore’s Public Transport Council (PTC) will
look into increasing the transfer rebate to close the gap.
Singapore’s Transport Ministry says about four in ten commuters
currently make transfer journeys on a weekday.
With the new through fare structure, commuters can take as many
buses and trains to their destination without being penalised with
a higher fare.
Changes will also be made to the fare adjustment formula, which
will see the public transport operators share their productivity
gains with commuters.
This means the maximum annual fare adjustment will be capped at
3 per cent instead of the higher 4.2 per cent under the old
formula.
The formula is pegged to macroeconomic factors — namely changes
in the Consumer Price Index and average monthly earnings. The
formula has been in place since 2005 and valid for three years.
The revised formula will be applicable for five years, instead
of three, to give commuters and operators more certainty in
fares.
The PTC was quick to point out, though, that the maximum annual
fare cap of 3 per cent does not determine the actual fare
adjustment.
Whether a commuter’s bus fare will go up by more than 3 per cent
or less, or whether a commuter actually stands to save money, will
depend on the distance travelled and the number of transfers made
in a journey.
Simply put, if a commuter takes long bus and train journeys with
many transfers, he will see a net reduction. But he will probably
end up paying more for short trips.
Public transport operators are expected to submit their
applications for a fare review in August.
The PTC will decide on the actual adjustment in September and
new fares will kick in in October. — CNA/ir