SBS, SMRT make submissions to PTC for MRT fare review

SINGAPORE – Both train operators SMRT and SBS Transit have made submissions to the Public Transport Council (PTC) in the latest fare review exercise, which could see public transport fares slashed by as much as 5.7 per cent next year.

The exercise concluded on Friday evening (Oct 7). When asked if they had applied to raise or lower fares, both SMRT and SBS declined to comment.

A PTC spokesman confirmed that submissions were received from both companies, and added that the PTC will “evaluate them carefully”. Asked for details, the spokesman said it is “premature to comment on the applications at this juncture”.

The PTC will announce its decision on the fare adjustment before the end of the year.

Bus operators weren’t required to apply to the PTC for the approval of fares as the public bus industry is transiting to the bus contracting model.

Based on the fare formula the PTC uses — which is pegged to changes in the Core Consumer Price Index, the Wage Index and the Energy Index over the preceding year — the PTC had said in September that “the maximum allowable fare adjustment is -5.7 per cent”.

This means that the reduction could be the highest in recent times — lower than the 4.6 per cent decrease during the 2009 global financial crisis. Public transport fares were cut by up to 1.9 per cent last December due to falling fuel prices.