Public Transport Fare Adjustment 2016

The Public Transport Fare Adjustment 2016 sees an overall 4.2% decrease in bus and train fares with effect from 30th December 2016. Adult Ez-Link card fares for buses and trains are set to decrease by 1 to 27 cents.

The maximum decrease of 27 cents is the result of simplification of the current fare structure, by lowering the fares for the fully-underground rail lines (NEL, CCL, DTL) to the fare level of above-ground rail lines. Across the board, fares for regular journeys (without utilizing the NEL, CCL or DTL) will decrease by 1 to 2 cents.

This is the sixth fare adjustment for the Distance-Based fare structure, with the last fare adjustment in December 2015 (see Second Public Transport Fare Adjustment 2015).

In addition, the new rail fares will be calculated based on the shortest travel path. Rail fares are curently determined by the distance of the fastest travel path between origin-destination pairs. However, the fastest travel path, which is based on travel time and includes walking and waiting time, may not always be the travel path with the shortest distance. The revised approach will be more intuitive for commuters and consistent with the current Distance Fare Framework.

The Fare Review At A Glance:

From 30th December 2016:

  • Adults
    Card fares to decrease by 1 – 27 cents per journey.
    Almost no change in Cash fares
  • Children below 7:
    No change in fares, free travel for all.
  • Students:
    Card fares to decrease by 1 cent per journey.
  • Senior Citizens
    Card fares to decrease by 1 – 7 cents per journey.
  • People with disabilities / Low-Wage Workers
    Card fares to decrease by 1 – 7 cents per journey.
  • All Monthly Concession Pass Holders
    No change in prices for monthly concession passes.

A:  Fare Revision Formula for 2016

For this round of fare adjustments, fares are decreasing by 4.2% owing to lower energy prices. A further 1.5 per cent reduction will be carried forward to the next fare review exercise, to spread out the impact of volatile energy
prices over time.

The fare formula is based on four components:

  • Core CPI inflation: This currently stands at 0.5 per cent, and excludes home and car prices.
  • Wage Index at 4.4 per cent, which is the change in Average Monthly Earnings over the preceding year
  • Energy index: This registered -35.8 per cent, due to a drop in energy costs in 2016. The energy index reflects the changing cost of electricity and diesel
  • Productivity index at 0.5 per cent, where operators share productivity gains with commuters.

These components have been given weightage of between 20 and 40 per cent – 40 per cent for core consumer price index (CPI), 40 per cent for wage index, and 20 per cent for energy index.

The fare adjustment quantum formula is as follows: CPI + Wages + Energy – Productivity = Fare Adjustment Quantum. So the 2016 fare adjustment quantum is -5.7 per cent.

The PTC has decided to effect a fare reduction of 4.2% on 30 Dec 2016, transferring the rest of the -1.5% quantum to next year.

B:  Fare adjustments for Adults

Regular commuters paying adult fares will see a 1 – 27 cent decrease in bus and train card fares from 30 December 2016. Cash fares will remain almost the same.

A consolidated list of new fares can be can be found on the PTC’s website.

C:  Fare adjustments for Concession Card holders:

Full-time students from Primary, Secondary and Tertiary institutions currently eligible for Student concession fares will see a 1 cent decrease in card fares for both bus and train fares from 30 December 2016. Cash fares will remain the same.

Senior Citizens, People with Disabilities and Low-Wage Workers using valid concession cards will see a 1 – 7 cent decrease in card fares for both bus and train fares from 30 December 2016.

A consolidated list of new fares can be can be found on the PTC’s website.

D: SBS Transit & SMRT Non-Basic Fare Adjustment

Fare revision for SBS Transit & SMRT’s non-basic bus services with special fares – SMRT Bus Service 926, Night Rider, Nite Owl, Parks, Chinatown Direct and Premium services – will be announced at a later date, if any.


PTC Fare Revision 2016 Infographic
PTC Fare Revision 2016 Infographic

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