Higher fuel prices: MOE asks schools to consider bus fare hike requests for external activities
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School bus operators are hoping for more support to help them cope with surging diesel fuel costs.
ST PHOTO: KELVIN CHNG
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- MOE advises schools to "reasonably consider" private bus operators' requests to revise ad hoc transport fares due to higher fuel costs affecting school trips.
- The Singapore School Transport Association suggests a 30-40% fare increase is needed, but some schools may offer only a 13% rise, similar to regular bus service support.
- Bus operators fear losses if schools can't afford increased costs, potentially cancelling trips, while they struggle to cover expenses.
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SINGAPORE – The Ministry of Education (MOE) has informed schools to “reasonably consider” requests from private bus operators to increase fares paid by schools for external activities such as field trips and competitions, in view of higher fuel costs.
This is to ensure that school operations and the students’ learning experiences will not be adversely affected, the ministry told The Straits Times late on April 15.
Unlike regular school bus services, which parents pay for, ad hoc trips for competitions, learning journeys and other external school activities are funded directly by schools. The costs for these trips are typically locked in by contracts, which operators can now seek to revise.
To help bus operators with higher fuel prices for regular school services, MOE had earlier announced temporary funding amounting to 13 per cent of fare revenue from April to June. This does not extend to ad hoc trips.
As at April 16, diesel is priced at $4.68 a litre at most major retailers, according to the Consumers Association of Singapore’s Price Kaki app. This is up from around $2.50 a litre in late February, when the Iran war began.
Depending on factors such as timing, type of bus needed and distance, a two-way ad hoc school trip is now priced at between $100 and $200.
On April 14, the Singapore School Transport Association (SSTA), which represents more than 40 bus companies, informed its members that they can approach schools to request adjustments to their ad hoc bus contracts.
Mr Edmund Lee, SSTA’s chairman, said some bus operators that have contacted their schools have been told the increase is likely to be similar to the support given for regular bus services, which is 13 per cent.
Mr Lee said that while SSTA appreciates the help from MOE, bus companies need fares to be raised by between 30 per cent and 40 per cent to offset the spike in the price of diesel fuel due to the Middle East conflict.
Nevertheless, Mr Lee, who is also a director of EML Transport Service, described the ministry’s measure as “better than nothing”, but hopes for reviews every three months or so to keep pace with developments.
Woodlands Transport’s executive director and head of bus operations, Mr Voo Wei Keong, said the company is trying to get a sense of the extent of any possible increase, rather than a targeted increment. He does not know how much the schools are able to accept.
According to Mr Voo, for ad hoc transport jobs, a one-way trip will be priced closer to $150 today. This is $50 more than before the fuel price hikes.
Although ad hoc school transport contracts form a relatively small part of Woodlands Transport’s business, Mr Voo said it is crucial to raise revenue, wherever possible, to cover the higher cost of fuel.
Mr Yeo Kah Hua, owner of Aik Shen Bus Service, which operates 25 buses of various sizes, said bus companies are in a difficult position.
“Schools have budgets to work with. If they cannot afford the transport cost and cancel their trip, we will also lose,” he added.
“At the same time, we cannot be operating at a loss and be drawing from our own pocket to cover the cost.”
Mr Yeo has yet to request a hike from the six schools he has ad hoc transport contracts with.
He said that whatever profits from his current mix of jobs, which includes transporting workers and international school students, have been used to cover the fuel price increases. He noted that if diesel prices continue to rise, he may not be able to provide the service at a loss.
Over at the Singapore School & Private Hire Bus Owners’ Association, chairman Colin Gan said some bus companies are concerned that any negotiated increase for ad hoc trip rates may be lower than 13 per cent.
He noted that operators often give drivers a cut of about 30 per cent of the takings from the ad hoc trips for working non-routine hours.
With the higher fuel costs, Mr Gan believes that prices may need to be “nearly double” the current contracted price to remain commercially viable.
