Reviewing Public Transport Fare Adjustment Formula to Factor in Service Quality and Time Limit on Carrying Forward Deferred Fare Increase
3 November 2026
Sectors
Fares
Written Reply to Parliamentary Question
Mr Chua Kheng Wee Louis asked the Minister for Transport
a. when will the Public Transport Council (PTC) commence its next review of the fare adjustment formula;
b. whether the review will consider (i) a service quality component to reflect operators' reliability performance and (ii) a time limit on carrying forward the deferred fare quantum; and
c. whether the public will be consulted before the terms of reference are finalised.
Reply by Minister for Transport Jeffrey Siow
1. The Public Transport Council (PTC) reviews the fare adjustment formula every five years. The next review is due by 2028.
2. The PTC has previously explained that linking fares to individual operators’ performance is not practical in a system that involves multiple operators. There are separate mechanisms to hold bus and rail operators accountable for service quality and reliability, including financial incentives and penalties based on performance.
3. The deferred fare adjustment mechanism is the means by which PTC moderates the impact of fare increases on commuters. Imposing a time limit on the deferred fare quantum could either result in larger fare adjustments as costs are passed through within a fixed period, or extended subsidies by taxpayers which will erode the financial sustainability of our public transport system.
