Hike, hike, hike everything also hike.
It’s that time of the year again, when our public transport fares undergoes a review. The fare mechanism and formula is currently being broken down and adjusted by our Public Transport Council (PTC), which for the uninformed is an independent statutory board regulating our transport system.
We never know how these reviews might turn out – and some can hope for a fare reduction like we did in 2016, but based on the blog post by PTC’s chairman and things our transport minister are saying, things aren’t looking so bright for our pockets.
Here’s A Summary
Reminding us of the fact that the government is “bearing the cost of improvements” to our public transport system, it seems like it is subtly hinting us to expect a fare hike. In a nutshell, we were told that there will be a need for cost-sharing among us, taxpayers and public transport operators.
Currently, the fare formula takes into account changes in the inflation rate, our wages, oil and electricity costs. This is expected to change since the government has taken over full ownership of the system, and since they are expected not to excessively profit from their monopoly, the fare formula is expected to change.
Just last month, our transport minister announced that the fare revenues aren’t enough to cover their operating costs and replace ageing rail assets. They need another $20 billion for our new public transport infrastructure.
“Improvements Are Not Free”
And while we agree that service improvements do come at a cost and commuters need to be understanding, there needs to be a revenue-neutral model. Most of us are aware of the fact that our transport facilities have evolved, which we sometimes take for granted – but system reliability is something PTC should take into consideration.
Meaning that if we were thrown a fare increase, it should be channelled to operational need and keeping our transport sustainable. Our transport fares increasing every time costs go us is not a very practical idea – be it a significant increase or not.
Here’s What Your Fellow Singaporeans Have To Say:
Practicality aside, the formula should definitely use a more sustainable model rather than one that uses the inflation rate.
It doesn’t take a genius to conclude that these public announcements all hints at a possible price hike.
While some remain optimistic, most are wise enough to sense that our transport fares will be increasing.