Transport minister Raymond Lim tempered expectations that falling oil prices will translate into a similar drop in fares, saying that there is no direct correlation between the two.
Public transport companies however always state that rising oil prices were the main reason each time they applied for fare adjustment to the PTC. Below are those statements, direct from their own mouth. SBS Transit seems to be using the same template every year.
So who is telling the truth?
2008 - For FY2008, SMRT’s energy cost increased 18% to $89.7 million due mainly to higher electricity and diesel prices. Of the $89.7 million, electricity cost accounted for $47.5 million, an increase of 19% compared to FY2007. Diesel costs for bus operations amounted to $42.2 million, 17% higher than last financial year
2007 - Electricity cost has increased by 26.3 per cent from $31.5 million in FY 2006 to $39.8 million in FY 2007. Cost pressures posed by the sustained high price of diesel is further compounded by a 3.8 per cent increase in the cost of diesel for SMRT Buses, from $34.2 million in FY 2006 to $35.5 million in FY 200
2006 - SMRT is still facing cost pressures, particularly the large and sustained increase in the price of diesel. Diesel cost has increased by 40% from $24.1 million (FY05) to $33.8 million (FY06).
2005 - During the past 3 years, SMRT's operating costs have also risen because of the increases in the statutory and operating fees, as well as high oil prices that continue to affect our electricity and diesel costs.
2008 - Fuel and energy costs have, for example, increased significantly in the last year.
2007 - Due to significant cost increases, including record high fuel prices and rising manpower costs
2006 - Due to significant cost increases, led by the continuing rise in fuel costs. In the last year, energy costs have risen by over 40%, or nearly $30 million, compared to the year before. From the end of last year, we have been further required to use only ultra-low sulphur diesel which costs more. This alone will increase our fuel costs by another $2.2 million a year. At $101 million, or 18% of total operating costs, energy costs have become our largest expense after manpower costs.
2005 - Due to significant cost increases, including an unprecedented rise in fuel costs. Fuel costs for buses alone have risen from $39 million in 2002 to $55 million last year. Oil prices, which started off last year at about US$33 a barrel, have been rising strongly and is now trading in the region of US$50.