Fare increase come already!

Fare increase come already! Within expectations but on the higher end of expectation range. Bad for commuters like me and great for shareholders. Note that next yr also got fare increase, it will seem. Seow liaoz!

[disclaimer: this is a first cut impression; maybe I will come to a different conclusion after I read the detailed annoucement]

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--- A Straits Times Article (17 Jan 2014) --

The Public Transport Council (PTC) has approved a fare increase of 3.2 per cent on train and bus fares from April 6 this year.

Adult card fares for buses and trains will go up by 4 to 6 cents per journey. Senior citizens will pay 2 to 3 cents more per journey, while students pay 2 cents more.

Cash fares for train and adult bus rides will go up by 20 cents per trip, while senior citizen and student concessionary cash fares for bus rides will increase by 10 cents per trip.

Public transport fares were last adjusted in October 2011. The 2012 exercise was suspended to allow a Fare Review Mechanism Committee to come up with a new fare formula, which includes an energy component to reflect rising costs as well as more fare subsidies.

This latest round of exercise combines the 2013 exercise with that for 2012.

At a press conference on Thursday, PTC chairman Gerard Ee said the adjustment takes into account the 2012 fare cap of 4.5 per cent, and the 2013 fare cap of 2.1 per cent.

“Clearly, 6.6 per cent in one go is very high, and so, to minimise the impact on commuters, it was obvious to us that we should just do part of the increase this year, and roll-over the rest,” said Mr Ee. 

Hence, the balance of 3.4 per cent will be rolled over to the 2014 exercise.

He stressed that affordability was a key priority for the council, and the 3.2 per cent increase is “significantly lower than the expected average national wage increase for 2013”.

The national wage increase is likely to be close to 5 per cent, he said.

But he also said the council’s mandate was to “strike a balance between affordability of public transport fares and the sustainability of the public transport operators”.