Singapore likely to face fare reduction due to fuel price cut

Singapore likely to face fare reduction due to fuel price cut

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Singapore witnessed a drop in prices of fuel in 2014 and it is expected that the price cut can lead to a reduction of transport fares in the next fare revision by the end of 2015. Transport Minister Lui Tuck Yew in Parliament on January 19, 2015 said that the adjustments in fares could be possible in the region of negative one percent.

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Member of Parliament Gan Thiam Poh had questioned regarding the 2014 fare review, if the Public Transport Council will opt for a reduction in transport fares due to the fall in oil prices since June 2014. Minister Lui added, “We will have to leave it to the Public Transport Council to assess the public transport operators’ applications for fare increase, the fare adjustment quantum as given by the formula and the affordability of public transport for Singaporeans, amongst other things, and decide on the fare adjustment”.

The fare calculation depends on the changes in the core consumer price index, energy index as well as wage index in the proceeding year. Lui also said that this reflects the operating costs of the public transport operators. The wage index and the core consumer price index accounts for 40 percent of the formula each while the energy component accounts for 20 percent.

Photo Credits: straitstimes