- New public transport fare formula aims to reduce fare volatility.
- Focus on the affordability & sustainability of public transport.
- Updated formula & mechanism to ensure better rides and affordable fares.
Public transport fare adjustments got you scratching your head?
No worries, lah. Let’s break it down, Singapore style!
New Fare Adjustment Formula Explained, Ah?
You see, the Public Transport Council (PTC) got this new formula for adjusting bus & MRT fares from 2023 to 2027.
It looks like this: 0.5 cCPI + 0.4 WI + 0.1 EI – PC + C
A bit cheem, right? I know.
But don’t worry. I’ll break it down for you.
So, the cCPI, WI, and EI are still there, like before.
They are about costs, wages, and energy prices.
But now, they got this new thing called Productivity Contribution (PC), fixed at 0.1% for the next 5 years.
This is to keep public transport operators motivated to improve productivity.
And then, they replace the Network Capacity Factor (NCF) with a Capacity Adjustment Factor (C), fixed at 1.1% for the next 5 years.
It’s based on the actual & planned capacity improvements from 2020 to 2026.
This new formula is to make things more stable and affordable.
What Does This Mean for Us Commuters?
Good news lah!
With this new formula, our public transport fares will not change as much as they used to.
It’s like riding a bus without all the sudden jerks and stops; you get what I mean? 😉
Plus, they are trying to ensure the public transport system stays in business.
So that they won’t disappear on us as some contractors did during HDB BTO construction works.
The Deferred Fare Adjustment Mechanism: What’s That?
This one also quite important.
The PTC can hold back the fare adjustments to later years if they think the current situation is bad for us.
Examples are during the COVID-19 pandemic or when energy prices go up too much.
So it’s like a backup plan.
Actionable & Practical Takeaways
- Know how the new fare adjustment formula affects your monthly transport spending.
- Appreciate the efforts to make bus & MRT fares more stable and affordable.
- Consider buying Concession Cards or Monthly Passes.
Now you know more about the new public transport fare adjustment formula and how it affects you, right?
Hopefully, it all makes sense to you now, and you can ride the bus and MRT without worrying too much about those fares.
Still Not sure?
Here are 4 infographics from PTC to help you understand the changes.