Public transport fares could be heading for significant adjustment come 2023.
The change comes as the Public Transport Council (PTC) announced on 15 August 2022 that it has commenced its review of the public transport fare adjustment formula and mechanism. This review is typically conducted every five years.
Public transport ridership was esitmated to only be at 60% of pre-pandemic levels in October 2021 The current formula considers five key factors including core inflation, energy prices, wage increases, productivity, and the network capacity of the public transport system.
The PTC also announced that it is targeting to complete this review by the first half of 2023, and apply the outcome of the review from the 2023 Fare Review Exercise. However, the current fare adjustment formula and mechanism will remain valid for the 2022 Fare Review Exercise.
The PTC stated in the same announcement, that it aims to factor in current changes in the public transport industry and commuting patterns, in devising the new formula.
The outcome of this fare adjument formula review will be applied for the 2023 Fare Review Exercise It additionally seeks to maintain a balance in keeping keep public transport fares affordable while ensuring the financial sustainability of the public transport system. Key stakeholders, such as commuters, public transport operators, the labour movement and transport experts will all be consulted as part of this formula review.
Public transport fares saw their last upward adjustment in December 2021, wherein the PTC granted the full 2.2% increase allowed and requested by operators here, to help them mitigate the rising costs of running public transport services as fuel prices increased.
This translated into a $0.03 increased fare per trip for journeys less than 14.2km long, and $0.04 more per trip for journeys longer than 14.2km for adults paying via fare cards, amongst other adjustments.
Decreasing public transport ridership also ate into operator revenues since 2021, with ridership rates in late 2021 said to stand at only 60% of pre-pandemic levels.
The change comes as the Public Transport Council (PTC) announced on 15 August 2022 that it has commenced its review of the public transport fare adjustment formula and mechanism. This review is typically conducted every five years.
The PTC also announced that it is targeting to complete this review by the first half of 2023, and apply the outcome of the review from the 2023 Fare Review Exercise. However, the current fare adjustment formula and mechanism will remain valid for the 2022 Fare Review Exercise.
The PTC stated in the same announcement, that it aims to factor in current changes in the public transport industry and commuting patterns, in devising the new formula.
Public transport fares saw their last upward adjustment in December 2021, wherein the PTC granted the full 2.2% increase allowed and requested by operators here, to help them mitigate the rising costs of running public transport services as fuel prices increased.
This translated into a $0.03 increased fare per trip for journeys less than 14.2km long, and $0.04 more per trip for journeys longer than 14.2km for adults paying via fare cards, amongst other adjustments.
Decreasing public transport ridership also ate into operator revenues since 2021, with ridership rates in late 2021 said to stand at only 60% of pre-pandemic levels.
