Bus, train rides may cost two cents moreTor Ching Li
[email protected]IT COULD cost up to two cents more per bus or train trip on average come October, now that both public transport companies have applied to the Public Transport Council (PTC) for a fare increase.
While not giving details of the proposed fare adjustments submitted yesterday, both SBS Transit and SMRT will have to keep their fare increases capped at 1.7 per cent of the current fares, according to the PTC's fare adjustment formula.
This is lower than 2005's 2.4-per-cent cap which saw fares go up in July last year by one to three cents for rides paid for using the ez-link system, and 10 cents for commuters who pay by cash on buses or who buy single-trip tickets on trains.
SBS Transit said most adults travelling on their buses "
will see only a one-cent or two-cent increase for each trip". Only 3 per cent of all trips will see a three-cent increase.
SMRT said the maximum fare hike would translate to an average fare increase of two cents per trip.
Both transport operators said that the proposed fare hikes would not affect children and student fares on concession passes or using ez-link cards. SMRT added that there would be no increase for single-trip ticket fares and cash fares on its buses.
Depending on the final fare adjustments, both companies said they would help lower-income households adjust through various schemes, such as the Public Transport Fund.
The continued rise in fuel costs — which rose by 40 per cent over the past year — was cited as a reason for the fare hikes.
SBS Transit said the maximum fare adjustment would add $9.9 million to its full year's revenue — providing only partial relief for the $30-million increase in fuel costs last year. Diesel costs for SMRT rose from $24.1 million last year to $33.8 million this year.
The requirement to use ultra-low sulphur diesel as of last year also added $2.2 million to fuel costs, according to SBS Transit, making its $101-million energy costs the largest component — or 18 per cent — of its total operating costs.
Despite higher operating costs, however, both companies remain profitable.
SBS Transit posted net profits of $55 million in the first quarter this year and SMRT recorded a net profit of $27.4 million for the first quarter this year — 6.8 per cent more than the same period last year. This was due to increased train ridership and growing retail rental and advertising income.
Said SBS Transit spokesperson Tammy Tan: "
While the company is still profitable, a fare adjustment is necessary to ensure that it continues to earn sufficient money to be able to invest in its operations, so as to improve its services. Buying new buses, for instance, costs money."
Last year, SBS Transit spent $150 million on 150 new air-conditioned, double-deck buses which are also wheelchair-accessible. It will be adding 50 more such buses at a cost of $25 million this year.
PTC chairman Gerard Ee said that the council will study the proposed fare hikes and come to a decision by early next month.
"
We will try to minimise the impact on the consumers, bearing in mind they come from a wide range of household incomes," said Mr Ee.