Additional funding support for school bus operators in May and June: MOE

SINGAPORE – School bus operators will receive additional funding in May and June, covering 20 per cent of transport fare revenue. They will also be given the flexibility to increase fares to a certain point if fuel prices remain elevated in July, the Ministry of Education (MOE) said.

In a reply to media queries, MOE said on May 15 that it had earlier provided temporary support to such operators from April, owing to an increase in operating costs as a result of higher fuel prices.

At that point, this funding covered 13 per cent of transport fare revenue.

If fuel prices remain high even after June, MOE said it will allow bus operators to offset their operating costs through a “time-bound fuel surcharge”.

The maximum amount will be set by the ministry, and operators can increase fares up to that amount.

MOE said it will inform operators of the cap in June, before disseminating information about the new school bus fares to parents.

In so doing, parents “can plan their transport arrangements after the June school holidays, if needed”, the ministry said, adding that it will continue to review fuel prices, and either adjust or remove the surcharge as necessary.

Parents were separately informed of the latest support measures on the Parents Gateway app on May 15, and were told that either their child’s school or bus operator will update them about any fare adjustment by the end of June.

The notification said that based on current fuel prices, the fuel surcharge could possibly be capped at about 20 per cent of existing fares for July and August, following which a review would be done.

Mr Paul Pang, director of NewGen Transport, which serves Fuhua Primary School in Jurong East, said the additional support by MOE was a welcome move.

He noted that the additional funding effectively covered only May, given the school holidays in June. “If there’s no school in June, then your buses aren’t operating and you’re not using fuel, so I think it’s fair enough.”

As fuel prices are unlikely to fall any time soon, he expects bus operators to implement fuel surcharges according to MOE’s guidelines, but added that those who raise fares by the maximum amount are putting their business at risk.

“Parents could possibly choose to withdraw their children from using school buses. The cost of almost everything is increasing, and we don’t know how much parents will be willing to stomach if bus fares also go up.”

He said parents may be more willing to accept a surcharge capped at a lower percentage, such as 10 per cent.

Students on MOE’s Financial Assistance Scheme will not be affected by these fare hikes, as they will receive additional subsidies to cover the extra costs.

Special education students will similarly receive financial assistance to defray these costs if they are eligible for the Enabling Transport Subsidy provided by the Ministry of Social and Family Development (MSF) and administered by SG Enable.

MOE said students can approach their respective schools if they need additional support or are ineligible for financial assistance or the Enabling Transport Subsidy.

The ministry’s reply came on the same day that the Ministry of Trade and Industry, Ministry of Transport and Enterprise Singapore released an advisory, in which private bus operators were told to decide any fare changes independently, without colluding with others.

Operators were also advised to “be transparent and communicate any surcharges early to customers”.

The advisory added that transport service providers receiving temporary support from MOE, MSF or the Ministry of Health for providing transportation to selected groups of people should “keep their fares stable, in view of the support provided”. It cited primary schools, special education schools, disability services, and patients receiving long-term care and community dialysis services.

Fuel prices across the world have spiked since the outbreak of the Iran war, with restrictions imposed on the Strait of Hormuz crippling the flow of oil and gas.

About 20 per cent of the world’s oil and gas is transported through the waterway.