Higher Oil Prices will inevitably lead to higher operating cost
for SMRT. As such, SMRT is likely to apply to the PTC again next
month for permission to increase transport fares to offset the
increase in diesel prices. 
Good news for SMRT shareholders!
Edit: As expected
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SINGAPORE: Both SBS Transit and SMRT have applied to the Public
Transport Council to raise bus and train fares.
The exact fare increment will be determined later, using a standard
formula, in this annual fare revision exercise.
Energy costs have been a big drain on the two big public transport
operators.
Both companies have quoted rises of between 20 and 26 percent in
this area alone.
SBS Transit said manpower costs its single largest cost component
have also increased by about S$12 million during the year, while
SMRT said it would lose about S$11 million due to increases in GST
and employer's CPF contributions.
In making their applications to the Public Transport Council, both
companies said they would not touch concession fares.
SMRT added that it would be asking for small increases in EZ-Link
fares for buses, adult train EZ-link fares and longer single-trip
train journeys.
This year's increment formula, which is linked to the performance
of Singapore's economy, is capped at 1.8 percent, slightly higher
than last year's 1.7 percent.
The formula was devised to ensure that there are small and regular
increases, instead of big jumps every few years.
Both transport operators said they are mindful of how fare
increases affect the lower income, so they would be considering
funding schemes to offset the impact on any hike.
Separately, the government has announced that S$10 million has been
set aside over three years to help the needy cope with fare
increases.
The fare changes, if accepted by the Public Transport Council, will
be announced next month and will kick in by October.
- CNA/so
