Review of Public Transport Fare Adjustment Formula to Mitigate Impact of Volatile Energy Prices on Commuters

Written Reply to Parliamentary Question

Mr Dennis Tan Lip Fong asked the Minister for Transport

a.          whether the Ministry has assessed whether the current fare adjustment formula could result in repeated accumulations of deferred fare adjustment quantum during periods of volatile energy prices; and

b.          if so, whether any changes to the formula are being considered to mitigate the impact on commuters and reduce the risk of future fare shocks.

Reply by Minister for Transport Jeffrey Siow

1.          The Public Transport Council (PTC) takes into consideration the prevailing social and economic conditions before determining the fare adjustment quantum at each Fare Review Exercise. In recent years, where energy prices have been high and volatile, the PTC has deferred part of the fare adjustment quantum to moderate the impact on commuters. For the 2026 Fare Review Exercise, the PTC granted an overall fare increase of 7.0% – less than half the maximum allowable fare adjustment quantum of 14.7%, while reducing the deferred fare quantum marginally by 1.7%.

2.          Nevertheless, to keep the public transport system sustainable, fare adjustments must continue to account for the cost increases of providing public transport, including energy prices. The PTC will review the fare adjustment formula in totality prior to the 2028 Fare Review Exercise, to ensure that it continues to track cost changes.