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Ministry of Transport
In Parliament

Accounting For Energy Cost Changes in Public Transport New Fare Adjustments

4 November 2026

Sectors

Fares

Written Reply to Parliamentary Question

Mr Edward Chia Bing Hui asked the Minister for Transport given that the 2026 public transport fare adjustment was driven substantially by higher energy prices between July 2025 and June 2026, but electricity tariffs have since fallen in the fourth quarter of 2026, how does the public transport fare adjustment formula account for changes in energy costs before the new fares take effect.

Reply by Minister for Transport Jeffrey Siow

1.          Electricity tariffs for the fourth quarter of 2026 reflect energy prices between July and September the same year. For the 2026 Fare Review Exercise, the Energy Index in the fare adjustment formula was computed based on diesel and electricity prices over a 12-month reference period, from July 2025 to June 2026, compared to the previous reference period. Price changes after June 2026 will therefore be accounted for in the reference period for the next Fare Review Exercise in 2027.