From Dec. 28, 2024, bus and train fares will increase by 10 cents per journey for adult commuters and 4 cents per journey for 2 million concession card holders.
The Public Transport Council (PTC) announced the fare hike on Sep. 9, following a fare review exercise.
PTC will also extend the student concession validity period for graduating cohorts to four months after they have completed their studies.
This would help about 75,000 graduating students and their families with their transport expenses every year.
In light of the fare increase, the Ministry of Transport (MOT) announced an additional S$250 million in subsidies.
This is on top of the more than S$2 billion annual public transport subsidies to keep bus and train services running and the additional funding of up to S$900 million over eight years for the Bus Connectivity Enhancement Programme.
The formula
For the 2024 fare review exercise, the output from the fare adjustment formula was 3.3 per cent.
This was driven by core inflation and wage growth in 2023 and partially moderated by a decrease in energy prices from a peak in 2022.
For the past two years, PTC has moderated the fare increase to reduce the impact on commuters despite sustained increases in public transport operating costs.
This led to a deferred fare quantum of 15.6 per cent from previous fare review exercises.
After the deferred fare quantum is added to the fare adjustment formula for 2024, the maximum allowable fare adjustment quantum for the 2020 fare review exercise is 18.9 per cent.
PTC acknowledged that cost of living remains a concern for Singaporeans.
To cushion commuters from the full fare increase, the PTC granted an overall fare increase of 6.0 per cent for 2024, less than a third of the 18.9 per cent maximum allowable quantum.
This will reduce the deferred fare quantum to 12.9 per cent, which will be considered in future fare review exercises.
The fares
The 6.0 per cent fare adjustment will increase adult fares by 10 cents per journey.
For about 2 million concession card holders, there will be a 4-cent increase in fares per journey.
The prices of monthly passes will not see any increases.
This is to help heavy users of public transport cap their public expenses, said PTC.
PTC also encourages adults and concession groups who travel frequently to consider buying monthly passes to cap their public transport expenses.
Screenshot via PTC
Graduating students whose concession eligibility ends on or after Dec. 28 can enjoy concessionary fares for an extended period of four months.
This would impact students between two education stages and those transitioning from student concession benefits.
The extension will benefit around 75.000 students and help their families manage the transition out of or between concession schemes.
Graduating students can extend the validity of their concessionary cards by tapping their existing concessionary card at any ticketing machine located at MRT stations and bus interchanges or visiting a ticketing counter from Oct. 1, 2024.
Government support
In terms of government support, MOT will make Public Transport Vouchers (PTVs) worth S$60 available to lower-income households.
This is an increase from the S$50 PTVs provided in 2023.
These vouchers can be used to top up fare cards or buy monthly passes.
The government will also raise the income eligibility criterion for PTVs.
Households with a monthly household income of not more than S$1,800 per person will be eligible for PTVs.
This will allow an additional 60,000 households to qualify for PTVs in this exercise.
The first stage of the exercise will begin by the end of 2024.
Top photos via Unsplash & Mothership