SINGAPORE: The Public Transport Council (PTC) has approved fare increases for trains and buses from July 1.
Child fares, student and NSmen concession passes will not be affected by the hikes.
But senior citizens will have to face the increases.
The hikes, however, will generally be lower if commuters pay by using the ez-link card.
Train fares will go up by between one and three cents if paid by the card.
For buses, these will go up by between one and two cents.
But, if commuters pay cash, the fares will go up by 10 cents across the board.
About five percent of the 3.4 million rides made daily are made using cash.
Explaining the changes, the PTC said the operators had initially asked for more.
But they were granted increases of 2.4 percent under a later, revised proposal - the maximum allowed under the new formula.
"In our view, it is more equitable than either of their proposals," said Eric Gwee, PTC chairman.
Meanwhile, Mr Ong Kian Min, the chairman of the Fare Review Mechanism Committee which put the new formula in place, said he was quite surprised the PTC had awarded the full 2.4 percent amount.
This was considering the feedback from the commuting public in the last few weeks.
He was relieved, though, because if the old formula had been used, fares would have risen by up to 3.2 percent.
What considerations the PTC took into account in making their decision?
Firstly, the economic situation, which the PTC felt was "not adverse".
Secondly, the profit levels of the public transport companies - one brought up by many commuters.
The PTC felt that while the profit levels were "healthy", they were "not excessive" compared to other companies with a similar industry structure.
The PTC says the fare hikes may mean $13m to $14m in extra revenue for each of the two transport operators.
But, in reality, both companies will make less than this.
SBS Transit says it will spend $3.3 million to mitigate the impact of the increase, such as extending concessionary hours for senior citizens and capping the maximum fare at $1.90, regardless of the number of transfers.
SMRT says it is reviewing its fare structure.
Both operators will also contribute $1m each to the Public Transport Fund which was set up to help needy families adjust to the fare hikes. - CNA/ir
(WHO'S NEXT TO RAISE PRICES?!
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