Justification for Higher Fare Increase for Express Buses and Potential Impacts of Pricing Strategy on Ridership

Written Reply to Parliamentary Question

Mr David Hoe asked the Acting Minister for Transport for the latest Public Transport Council (PTC) Fare Review Exercise 

a.     why were express bus fares increased by up to $0.50 versus up to $0.10 for basic services;

b.     what cost and ridership parameters and formula were used to derive this increase; and

c.     whether this fare increase resulting in express bus commuters potentially switching to other commuting options was considered.

Reply by Acting Minister for Transport Jeffrey Siow: 

1.     The Public Transport Council (PTC) adjusts the fares for express buses based on their differential from that of basic services. Express bus services are typically operated on a unidirectional basis, which results in unit costs that are about 1.5 times that of basic bus services. As the express bus fare differential had not been adjusted since the introduction of distance-based fares in 2010, PTC assessed that it was timely to close the cost gap by raising the differential this year.

2.     PTC noted that the increase may have an impact on commuters who make express bus journeys. In cases where express bus services help to manage crowding on busier rail lines, such as the City Direct Services from the Northeast during the morning peak, the Land Transport Authority will continue to provide fare rebates through the Travel Smart Journeys programme to encourage take up by commuters.