Public transport council finally cuts fares by 1.9%

Lower energy prices triggered the fare rollback.

Commuters around the city-state can breathe a short sigh of relief as they can shave a few cents from their fare budgets following the fare rollback announced by Singapore’s public transport council.

According to OCBC, the fare cut would coincide with the opening of Downtown Line Phase 2 and is set to impact incumbents SMRT and ComfortDelGro.

Meanwhile, with the new transport minister, OCBC expects a more accelerated timeline for the new rail model and service improvements.

However, according to a statement by the Singapore’s PTC, the viability of the public transport system has also been considered in the fare cut.

“In this regard, we note that the expansion of the network and raising of service quality to boost ridership, will help increase the revenue of the operators,” the statement said.

“This year’s decision to reduce fares for commuters is in line with the negative fare quantum yielded by the fare adjustment formula due to lower energy prices. We have decided to grant the full quantum of reduction to benefit commuters and keep fares affordable,” said Richard Magnus, chairman of the PTC.

“The PTC’s authority and autonomy are undergirded by its independence and flexibility to regulate in the best interest of the overall public transport system. We are accountable to the Government and our citizens to contribute towards an efficient and sustainable public transport system that Singaporeans can be proud of,” Magnus added.