In conjunction with the opening of the new Downtown Line 2, public transport fares will be reduced by 1.9% from 27 December 2015. This is the maximum allowable fare reduction under the fare adjustment formula which considers salaries, inflation and energy costs.
The Public Transport Council or PTC announced that while salaries and operating expenses increases, energy prices dipped substantially. These contributed to the first fare reduction since 2010.
Adult fares will be lowered from between 1 to 4 cents while student and elderly fares were cut by 1 – 2 cents. However the PTC warned that while fares have been cut, the viability of the transport system should be taken into account. This 1.9% fare reduction will reduce SBS and SMRT’s revenue by $36.1 million.