BUS and train fares will go up from Oct 1, with most commuters having to pay up to four cents more per trip.

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But unlike previous years, when fare hikes were felt largely across the board, this time about four in 10 commuters will not have to pay more or could even end up spending less, according to the Public Transport Council (PTC).

Commuters who need to make a transfer to get to their destinations will benefit the most.

Of the lot, 13 per cent will see no change in their weekly commuting expenses while 28 per cent will each save 29 cents per week or around $15 a year.

For those who will have to pay more, ez-link card users will incur on average an additional four cents per ride, and folks using cash - a single-digit minority - will have to fork out 10 cents more.

The new fares announced on Friday are the result of two factors. One, the regular annual revision, which according to this year's formula, is capped at 3 per cent.

The second and more fundamental change is the move towards a distance-based fare structure.

This requires the dismantling of the 'transfer penalty', where commuters whose journeys involves transfers pay as much as 50 per cent more than those who take a direct service over the same distance.

For a start this year, the gap will be narrowed by increasing the transfer rebate from 25 cents to 40 cents, before the penalty is done away with altogether next year.

As a result of the changes, PTC chairman Gerard Ee said most commuters will see far smaller rises than the 3 per cent maximum allowed under the formula.

The higher 'transfer rebate', he added, will also influence people to change their travelling behaviour.

'With more rail lines coming, and more hub-and-spoke bus services, I believe travel patterns will change,' Mr Ee said, adding that the higher rebate 'gives people more choices'.

Read the full story in Saturday's edition of The Straits Times.