THE Public Transport Council (PTC) has decided on an overall fare increase of 2.8 per cent, which is what both SMRT and SBS Transit applied for and what Transport Minister Lui Tuck Yew earlier said would be the maximum fare increase.
The 2.8 per cent rise is the aggregate of a 3.4 per cent hike rolled over from the 2013 Fare Review Exercise, and -0.6 per cent from the fare revision formula for 2014.
But more than 1.1 million commuters should see no change in the fares that they pay when the changes take effect in April 2015. This is because the PTC has decided to freeze senior citizen fares and the prices of existing travel concession passes, and the Transport Ministry will do likewise for two government-funded schemes for lower-wage workers and persons with disabilities.
The government will also introduce a new off-peak monthly travel pass for adults, persons with disabilities and senior citizens from July 2015.
The fare hike will result in a total fare revenue increase of S$48.5 million a year for the two public transport operators - S$21.9 million for SBS Transit and S$26.6 million for SMRT.
But the PTC also decided that the two transport operators will have to channel a larger chunk - S$13.5 million - of the additional fare revenue to the Public Transport Fund, which goes to transport vouchers for the needy. This is higher than their total contribution of S$11.5 million last year.