Public transport fare hike is small compared to the increase in operating costs, analysts say

Analysts also pointed out that the prices of monthly travel and concession passes either held steady or decreased.

Assoc Prof Theseira said single-trip commuters and occasional commuters will pay higher fares than “heavy” users of public transport.

“I think this makes sense as this is the practice in many cities to ensure that those completely reliant on the public transport system are more protected, as they are often from the lower income groups as well,” he said.

“Single trip users, after all, also include tourists which we probably don’t want to subsidise, or commuters who are less likely to be reliant on public transport.” 

The government will also provide public transport vouchers worth S$50 each to lower-income households.

FUTURE FARE INCREASES

Fare increases are unlikely to get larger in the years to come, analysts said.

Assoc Prof Theseira said the PTC could continue to use wage increases when deciding how much to increase public transport fares.

“If wages don’t rise significantly, there may not be much room to distribute the fare quantum.”

Assistant Prof Fan of SMU and Assoc Prof Ong of NUS are of the view that the PTC aims to distribute the price increases more evenly.

Assoc Prof Ong said the hikes may hover around 10 cents for the next few years, with some percentage of the allowable increase rolled over each time until energy prices and inflation stabilise.

At that point, the increases that were deferred can be passed on to consumers, he said.

Assistant Prof Fan shares a similar view.

“What they’re trying to do is trying to smooth out the increases and not have like one eye-watering amount, and then like no increase the next year,” he said.

“They’re trying to manage it. But I mean, it’s a gamble, and it really depends on how the world changes and how the rest of the prices change.”