Written Reply to Parliamentary Question on the Effect of Recent Energy and Fuel Price Hikes on Public Transport Costs and Measures to Prevent Flow-through Cost Increases to Commuters

Mr Melvin Yong Yik Chye asked the Minister for Transport: 

a.     how has the recent increase in energy and fuel prices affected public transport costs; and

b.     whether there are any steps being taken to mitigate the impact of these costs from being passed down to commuters if these prices remain persistently high.

Reply by Minister for Transport S Iswaran:

1.     As with other industries, the increase in fuel prices and electricity tariffs will increase operating costs for public transport operators (PTOs). PTOs adopt various strategies to manage energy costs risks. In addition, the Fuel Equalisation Fund (FEF) was established and maintained for the purpose of mitigating the volatility in energy cost. PTOs can and do apply for the Public Transport Council’s (PTC) approval to draw on their FEF balances in times of high energy cost.

2.     Public transport fares in Singapore are governed by an established fare formula. The PTC will consider various factors, including energy prices, as well as operators’ financials and prevailing economic conditions before arriving at a considered decision at the annual Fare Review Exercise. Commuters who need extra assistance can also apply for Public Transport Vouchers to defray their transport expenses.