Public Transport Fare Review 2022

The Public Transport Fare Review (FRE) 2022 sees an overall 2.9% increase in bus and train fares with effect from 26th December 2022. Adult card fares for buses and trains are set to increase by 4 – 5 cents.

As published by the Public Transport Council (PTC) in October 2019, based on the new Public Transport Fare Adjustment Formula applicable from 2018 to 2022, the maximum allowable fare adjustment quantum to be considered for the 2022 Fare Review Exercise is 13.5%.

The PTC decided to grant a fare adjustment quantum of 2.9%, and carry over the remaining 10.6% to future FREs. This is made possible by the Government’s provision of an additional subsidy of about $200 million in 2023. This will help to mitigate the impact of the fare increase on commuters.

The Fare Review At A Glance:

From 26th December 2022:

• Adults
  Card fares to increase by 4 – 5 cents per journey.
  (4 cents increase for journeys equal to or less than 8.2km; 5 cents increase for journeys more than 8.2km)
• Children below 7:
  No change in fares; free travel for all.
• Students:
  Card fares to increase by 1 cent per journey.
• Senior Citizens
  Card fares to increase by 1 cent per journey.
• Persons with Disabilities / Workfare Transport Concession Cardholders
  Card fares to increase by 1 cent per journey.lank
• All Monthly Concession Pass Holders
  No change
  
• Cash Fares
  No change

Fare Adjustment Formula

PTC is a statutory board under the Ministry of Transport that regulates public transport fares. The board conducts annual Fare Review Exercises to adjust public transport fares, and new fares usually take effect in end-December.

The current Fare Adjustment Formula is as follows, and is applicable from 2018 to 2022:

Year 2022 Fare Adjustment Quantum = 0.5cCPI + 0.4WI + 0.1EI + NCF – 0.1% = 13.5%

The Fare Adjustment Formula is based on five components:

• Core Consumer Price Index (cCPI): the change in core Consumer Price Index over preceding year; 0.9% in 2021.
• Wage Index (WI): the change in Average Monthly Earnings (Annual National Average) over the preceding year, adjusted to account for any change in the employer’s CPF contribution rate; 3.6% in 2021.
• Energy Index (EI): the change in Energy Index which is a composite of cost changes in electricity and diesel; 117% in 2021.
• 0.1% – Productivity Extraction factor set for 2018 to 2022.
• Network Capacity Factor (NCF): the change in NCF over preceding year, which means capacity provision relative to passenger demand for the entire public transport system; excluded from the computation of fare adjustment quantum for 2022

Fare Adjustment Quantum granted for 2022: 2.9% (remaining 10.6% carried over to future FREs)

Remarks:

• Due to the spike in energy prices, the weighted Energy Index (EI) contributed 11.7% to the fare adjustment quantum generated by the formula. To mitigate the impact on commuters, only 1.1% of the EI will be implemented in FRE 2022
• Given that the impact of COVID–19 on ridership continued for the full year of 2021, PTC has decided to apply the same principle and continue to exclude NCF from the computation of this year’s fare adjustment quantum. The NCF is intended to reflect changes in cost due to enhancements in public transport capacity, such as the expansion of the rail network or running more trains and buses, relative to commuter demand. However, the NCF is not designed to track short–term fluctuations in demand and supply. Public transport ridership remains significantly affected by the pandemic, while bus and train services have continued to operate largely at pre–COVID–19 frequencies. In the 2021 FRE, PTC excluded the NCF for the months of 2020 that were affected by the pandemic (Feb 2020 – Dec 2020).

Highlights of Public Transport Operators’ Applications

SBS Transit applied for a fare adjustment of 13.5%, citing that ridership still remained below pre–COVID levels and that flexible work arrangements have shifted the travel patterns of commuters. In addition, they are facing increased cost pressures from rising energy costs, global inflation coupled with challenges in hiring and retaining talents. In its latest financial year, SBS Transit’s train segment reported a loss of tens of millions of dollars even with Government support for COVID–19.

SMRT Trains applied for a fare adjustment of 13.5%. The operator cited escalating costs to maintain service reliability, safety standards, intensified cleaning regime and from the surge in energy prices. For its latest financial year, SMRT Trains recorded an operating profit of $16 million, after taking into account the broad–based Government support for COVID–19.

Fare Adjustments for Adults

Regular commuters paying adult fares via Card will see a 4 to 5 cent increase in bus and train card fares from 26 December 2022.

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

Fare Adjustments for Concession Card holders:

Full-time students from Primary, Secondary and Tertiary institutions currently eligible for Student concession fares, Senior Citizens, Persons With Disabilities and Workfare Transport Concession cardholders will see a 1 cent increase in card fare for both bus and train from 26 December 2022.

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

PTC Posters

External Links & References:

• 2022 Fare Review Exercise – Public Transport Council

Past Fare Review Exercises:

• Public Transport Fare Review 2021
• Public Transport Fare Review 2020
• Public Transport Fare Review 2019
• Public Transport Fare Review 2018

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