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SINGAPORE – Public transportation fares will not increase this year to help travelers amid the Covid-19 pandemic.
Under normal circumstances, fares could have increased by as much as 4.4 percent under the current formula of the fare review exercise, the Public Transportation Council (PTC) said in its annual fare review announcement on Friday (Sept. 4). ).
The increase has carried over to fiscal year next year even though public transport operators face mounting losses. But next year’s review is unlikely to lead to a significant increase, given the current circumstances with Covid-19.
Noting that the pandemic is an unprecedented crisis, PTC President Richard Magnus said: “The council recognizes the exceptional circumstances that Singaporeans face and has considered the impact on commuters from public transportation.”
“Therefore, the council has decided not to adjust fares to ease the burden on travelers.”
Up to two million Singaporeans will also continue to enjoy preferential rates.
Public transport fares rose 7 percent last year, the maximum allowed under the formula for 2019. The figure had been the biggest percentage jump since 1998.
The decision not to raise fares this year comes amid increasing financial pressure on public transport operators, which have been hit hard by a drop in passenger numbers without a corresponding drop in bus and train frequencies. .
Train operators SMRT Trains and SBS Transit had requested a 4.4 percent fare increase, and both posted more than $ 10 million in losses in their last financial year even without taking into account the full impact of the Covid pandemic. 19.
The number of public transport users dropped by around 75 percent during the circuit break period from April to June, but services largely remained at pre-Covid-19 levels to allow commuters to travel. safely and smoothly.
Additional funds were also spent to intensify cleanup regimes amid the pandemic.
Even after the breaker measures were lifted, passenger numbers remain at roughly 60 percent of pre-Covid-19 levels.
PTC said: “With the impact of Covid-19, revenues have fallen further and we expect government subsidies to be even higher this year.”
The Government was expected to spend about $ 1 billion to renovate and improve rail operating assets, and another $ 1 billion to subsidize public bus services annually for the next five years. This translates to more than $ 1 in allowances for each trip taken.
Magnus said the difference between fee income and operating cost was one of the reasons the council took into consideration for not recommending a fee reduction.
Other factors included the continuation of the concession schemes, the extension of the application period, the public transport vouchers, and the fact that the government has announced financial support for Singaporeans through various support measures.
Responding to journalists’ questions about next year’s review exercise, Magnus said the pandemic would likely lead to a drop in the consumer price index, the wage index and the energy index, all factors that make up the rate adjustment formula.
“I highly doubt that we will see a rate increase … a position not dissimilar to this year’s position,” Magnus said.
The number of users of public transport registered its fifteenth consecutive year of growth until last year. The Land Transportation Authority reported a record 7,691,000 trips a day last year, a 2 percent increase from the previous year.
The number of bus users grew 1.5 percent to a daily average of 4,099,000, while the number of train users grew 2.6 percent to 3,592,000.
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