A year before the plunge in oil prices, the Public Transport Council changed the fare formula to peg fare increases in a particular year to inflationary changes more than a year ago and so even though oil prices have plunged over the past few months, the PTC still insisted that fares need to go up by 2.8% this year because fare changes in 2015 are based on what happened in 2013. Next year, by right, fares should drop because fare changes in 2016 should be pegged to the drop in oil prices in 2014. But now, PTC is saying that the fare formula might change because of the new bus contracting model. When the bus contracting model was announced last year, Transport Minister Lui Tuck Yew said that regular fare adjustments are still necessary (under the new model) to ensure the overall financial sustainability of the public transport system. There is surely no free lunch, Mr Lui also said. After changing the fare formula just before the plunge in oil prices so that they could still increase transport fares this year, now the government wants to change the fare formula again. Does this mean the fare formula will be changed to increase fares again next year even though they should drop? Mr Lui said as much as well that fares will increase. Singaporeans should be wise to what the government is trying to do backend and not be taken in by their theatrics.
Posted on: Thu, 22 Jan 2015 07:46:50 +0000
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