Public transport fares will not be increased by more than 2.8 per cent next year, said Transport Minister Lui Tuck Yew.
This is lower than the original roll-over figure of 3.4 per cent from the last fare review in January, and is largely due to a fall in energy costs.
"We know that energy costs have come down, as compared to 2012 ... The maximum that is allowed for this particular fare increase will be 2.8 per cent," said Mr Lui said in an interview with Channel NewsAsia (CNA).
January's review announced a fare hike of 6.6 per cent, to be adjusted in two tranches - a 3.2 per cent increase in April, and the remaining 3.4 per cent carried forward to the current review. With lower energy costs, the latter figure has now been revised to 2.8 per cent.
The fare formula is based on four components - core CPI (consumer price index) inflation, average wage increase, energy index, and productivity index.
The Public Transport Council (PTC) started its annual fare review last month, and results are expected to be announced in the first quarter of next year. The PTC told CNA that it will consider this fare adjustment of 2.8 per cent for the current review exercise.
Public transport operators SMRT and SBS Transit have until Friday (Dec 19) to submit their applications for a fare increase to the PTC, subject to approval by the Council.
This article was first published on December 18, 2014.
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