Why is the public transport fare hike so high in Singapore?

SINGAPORE – Public transport users will face a 7% hike in their bus and train fares from Dec 26, with adults paying 12 or 13 cents more, depending on the distance of their journeys.

Higher energy costs brought on by conflict in the Middle East are the primary driver of the record-high fare increases, said the Public Transport Council (PTC), which regulates fares and ticket payment services.

The Straits Times takes a closer look at how fare increases are determined, and how this affects commuters.

How is the fare hike determined?

The PTC applies a formula to determine the maximum amount that bus and train fares can be adjusted, after accounting for various factors that affect public transport operations.

The formula is reviewed every five years, with the current one valid till 2027.

Five components are taken into account. These include year-on-year changes in core inflation, wages and energy prices.

There is also a fixed “capacity adjustment factor” set at 1.1% each year. This is to account for costs related to expanding the public transport system.

The final component is productivity contribution, which accounts for a 0.1% reduction each year, as operators are expected to improve their cost efficiency.

After the formula throws up a figure for adjustment, the PTC has the option to defer the amount to subsequent fare reviews, depending on social and economic conditions.

An increase of 5.3% was produced by the formula in the latest fare review exercise, which used the period between July 2025 and June 2026 as a reference.

Coupled with the 9.4% quantum deferred from the previous fare review exercise in 2025, fares could have gone up by 14.7%.

However, the PTC chose to increase it by 7% and defer the remaining 7.7% to future fare review exercises.

How did higher energy prices affect the fare increase?

Public transport is an energy-intensive industry. The rail operators applied for the maximum allowable fare adjustment of 14.7%, citing cost pressures from geopolitical conflicts that have elevated energy prices.

Speaking to reporters on Sept 29, PTC chairperson Janet Ang said the year-on-year change in the monthly price of diesel fluctuated drastically from July 2025 to June 2026, swinging from -14% to 138%.

Daily energy prices had also increased significantly from March to June 2026 due to the Middle East conflict.

Although the energy component in the fare adjustment formula had the least weightage compared with core inflation and wages, it contributed the most to how the fare adjustment quantum was calculated.

How will the fare increase affect me?

Different groups of commuters will be impacted differently.

Adults will bear the brunt of the higher costs, paying 12 to 13 cents more for their public transport journeys if they use a card. Those using cash pay 20 cents more.

Seniors, students and people with disabilities will be paying 5 cents more when they use cards and 10 cents more with cash.

Low-wage workers who are under the Workfare Transport Concession Scheme will not experience any change in fares.

The prices of monthly passes will also remain unchanged – $122 for adults and $55 for seniors and those with disabilities.

What support can I get with the fare hike?

Lower-income households with a $2,100 per capita income will be eligible for public transport vouchers valued at $80.

They will either automatically receive the vouchers from end-December, or can apply for them online or in-person at their local community centres from early 2027.

How much money can I save with a monthly travel pass? 

PTC said around 110,000 commuters who are now paying by credit, debit and transport cards can save around $26 each month on average, after the 7% fare increase takes effect from Dec 26.

An adult monthly travel pass costs $122, unchanged from the previous year.

Take this example of an adult passenger who travels 16.2km via the bus and MRT every weekday between his home in Punggol Field and his office near City Hall MRT station:

He will spend $4.48 each day on the two-way trip from Dec 26, up from $4.22.

Each month, his commutes to and from his workplace will cost $89.60. 

If on Saturdays and Sundays, he also travels around the same distance and spends $4.48 on a two-way trip each day, his weekend excursions will total $35.84 each month. 

This means that an adult passenger who goes out every day will rack up travel expenses of $125.44.

And if he travels on an adult monthly pass costing $122, he will save around $3.

Fares are calculated based on the total distance travelled in one journey, regardless of the mode of transport used and if the passenger is making transfers.

But for passengers who do not make two daily trips that each cover a distance of 14.3km or longer, or do not travel every single day, they may not benefit from an adult monthly pass.

More calculations have to be done as different passengers have varying travel habits and schedules. 

Passengers can track their public transport expenses on the SimplyGo app, or check the potential travel fare using the Travel Guide on SimplyGo’s website or LTA’s Fare Calculator tool.