MOE advises schools to 'reasonably consider' bus fare hikes for off-site activities amid fuel cost pressures
"As the sudden spikes in fuel prices were unforeseen, transport operators may not have reasonably accounted for such increases when bidding for these contracts, which were called on or before the Middle East conflict," said the Ministry of Education.
Students boarding a school bus in Singapore. (File photo: TODAY/Wee Teck Hian)
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SINGAPORE: Schools should "reasonably consider" requests from contracted transport operators to raise bus fares for off-site activities amid fuel price spikes due to the Middle East conflict, the Ministry of Education (MOE) said on Friday (Apr 17).
In response to CNA's queries, MOE said that this will help keep on-demand bus services running so that school activities and students’ learning are not "adversely affected".
These operators provide bus services for off-site activities such as learning journeys and competitions, which are paid for by schools, and fare adjustments can help to offset higher fuel costs.
"As the sudden spikes in fuel prices were unforeseen, transport operators may not have reasonably accounted for such increases when bidding for these contracts, which were called on or before the Middle East conflict started on Feb 28," MOE said.
The ministry added that it will continue to monitor the situation and issue advisories to schools as needed, depending on market conditions.
In response to CNA's queries, the Singapore School and Private Hire Bus Owners’ Association (SSPHBOA) said on Apr 20 it was "happy" that MOE had taken on board its feedback and extended assistance to help the industry.
"SSPHBOA is working closely with member operators to identify and propose possible government assistance measures to help them cope during this difficult period."
The association added that it was not aware of the number of operators that have requested to raise bus fares amid higher fuel costs.
MOE previously announced it would provide temporary support to operators of regular school bus services - equivalent to 13 per cent of fare revenue - from April to June to help them cope with rising fuel costs.
Acting Minister for Transport Jeffrey Siow also said in parliament earlier this month that the government will temporarily co-fund cost increases for certain essential bus services to cushion the impact of the Middle East conflict on Singaporeans.
However, the government noted that fares may still have to rise if fuel prices remain elevated beyond the support period.
The surge in fuel prices due to the war in the Middle East has pushed up operating costs for various businesses.
Essential bus service operators have welcomed the government co-funding, but told CNA that longer-term solutions such as a waiver of road taxes should be considered.
