SINGAPORE : The two public transport operators, SBS Transit and SMRT, have submitted applications to the Public Transport Council (PTC) seeking bus and rail fare adjustments.
Both cited cost pressures despite increased efforts to lower costs and increase productivity.
SMRT is asking for the maximum fare adjustment of 2.8 per cent.
This is based on the annual fare adjustment formula that takes into account the consumer price index (CPI), wage index and productivity gains.
It said the cost pressures were mainly from escalating energy and manpower costs.
SMRT said its energy cost increased 17.5 per cent to S$122.4 million for the financial year ended March.
SBS Transit said it has been investing in new buses as part of a fleet renewal exercise, which began in 2006.
In the last year alone, orders were placed for another 600 buses costing S$268 million, which are scheduled for delivery in 2011 and 2012.
SBS Transit said more details of the application, which is subject to the approval of the PTC, will be announced at a later date.
Responding to the fare review proposals from the public transport operators, the new Chairman of the Government Parliamentary Committee for Transport, Cedric Foo, said he would like the Transport Ministry to review the fare adjustment formula.
Mr Foo told MediaCorp this includes how the government can assist the needy in coping with public transport costs.
Mr Foo, who is also Member of Parliament for Pioneer, said the fare formula has been in place for more than five years, and sufficient experience has been gained on how the formula had or had not worked.
Turning to SBS Transit's and SMRT's proposals for a fare increase, Mr Foo said applying for a fare adjustment is the first step towards any actual fare revision, if any.
And Singaporeans must await the PTC's deliberations and decision on whether such increases are justified.
He added that the timing of this year's fare revision was delayed from July to the third quarter because of the opening of the Circle Line in the third quarter. And the Ministry had explained earlier that it wanted to do the review only after the Circle Line is opened, to avoid the possibility of two adjustments in a single year.
