MOE raises school bus operator support to 20% of fare revenue amid continued high fuel prices
Should fuel prices remain elevated, MOE said transport operators will, from July, be allowed to offset higher operating costs through a "time-bound" fuel surcharge.
A row of school buses seen at a primary school in Singapore.
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SINGAPORE: The Ministry of Education (MOE) said on Friday (May 15) it will increase temporary support for operators of regular school bus services for May and June, citing continued high fuel prices.
The support will rise from the equivalent of 13 per cent to 20 per cent of transport fare revenue.
"This will help transport operators continue operating without disruption," MOE said.
The ministry previously announced in April it would provide temporary support to such operators to help them cope with rising fuel costs.
Acting Minister for Transport Jeffrey Siow also said in parliament last 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.
Should fuel prices remain elevated, MOE said transport operators will, from July, be allowed to offset higher operating costs through a "time-bound" fuel surcharge.
"MOE will set a maximum fuel surcharge that operators may charge, and operators may increase the school bus fares up to this surcharge," it added.
The ministry will update transport operators on the surcharge cap in June, and parents will then be informed of the revised school bus fares from July - if any - so they can plan their transport arrangements after the June school holidays.
MOE said it will continue to review fuel prices, and adjust or remove the maximum fuel surcharge allowed, in line with fuel price movements.
The ministry also advised schools last month to "reasonably consider" requests from contracted transport operators to raise bus fares for off-site activities amid fuel price spikes.
This would help keep on-demand bus services running so that school activities and students’ learning are not "adversely affected", it noted.
The ministry said on Friday that students on the MOE Financial Assistance Scheme (FAS) will not pay higher fares, as they will receive additional school bus subsidies that will cover any increase in their monthly school bus fares.
"Students who require additional support or who do not qualify for MOE FAS may approach their schools for school-based assistance."
Special education school students will also continue to receive financial assistance to defray school bus fares if they are eligible for the Ministry of Social and Family Development's Enabling Transport subsidy, which is administered by SG Enable.
Those who require additional support or do not qualify for the subsidy may approach their schools for school-based assistance.
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.
In response to CNA's queries, the Singapore School & Private Hire Bus Owners’ Association said on Saturday that it welcomed the latest measure announced by MOE, adding that it will provide "meaningful relief" for school bus operators.
"Our members have been absorbing losses since March, and while the support that arrived in April is appreciated ... it is not enough, hence the increment in subsidy in May will further help to cushion the losses," the association said.
However, it noted that the increased subsidy was still not sufficient.
"Diesel prices have risen significantly beyond what the current level of support is able to cover, and many operators continue to face considerable financial strain," it said.
The association added that only operators serving government schools under MOE have received support.
"Operators serving international schools or providing transport for corporate assignments are not eligible and have therefore not benefited from these measures," it said.
With regard to a "time-bound" fuel surcharge should fuel prices remain elevated, the association said its members will decide "on their own capacity to proceed with implementing the fuel surcharge".
"The association does not prescribe a fixed surcharge amount - each operator will assess their own cost structure and determine an appropriate rate accordingly.
"We hope that all parties - operators, the government and parents - will approach this with mutual understanding. The current situation is an exceptional one, and it is important that everyone plays their part during this challenging period," it said.
