Hikes in energy prices and public transport workers' wage were taken into consideration.
Public transport operators will be allowed to increase their fare by up to 4.3% the Public Transport Council (PTC) announced.
The move comes after a total fare decrease of 8.3% for the previous three consecutive years fueled by the sustained double-digit fall in energy prices. However, the energy prices have rebounded by 26.2% over the previous year, PTC noted.
Aside from fuel prices, PTC also took into consideration that the wage growth of public transport workers including bus captains and rail staff have inched up by 3% whilst the core Consumer Price Index (CPI) grew 1.5%, which is the highest increase in three years.
The agency further mentioned that bus capacity improvements contributed two-thirds to the network capacity factor (NCF).
“The Network Capacity Factor (NCF) of 3% balances commuter demand and public transport capacity enhancements and reflects the effort to provide commuters with more convenient and less crowded rides over the last year,” they explained.
Operators may file for fare hike applications to the PTC by 1 October for consideration. The agency will release its final deliberation by Q4 2018.
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