The cost of school bus services is expected to rise in 2024, after the Ministry of Education (MOE) announced on Thursday that it is allowing operators to increase the pricing cap of school bus fares under existing contracts by up to 13 per cent.
This adjustment will help the sustainability of school bus services amid rising operating costs, the ministry said.
MOE noted that the pricing cap was last adjusted in January 2023 by up to 7 per cent on existing contracts, but the latest hike was necessary due to rising cost pressures on the operators.
“This will significantly minimise the risk of disruptions and inconvenience to families should these incumbent operators be unable to sustain their operations,” it said.
Operators will inform parents and guardians of any revisions to the bus fares from September.
Primary school pupils under MOE’s Financial Assistance Scheme will continue to receive school bus subsidies that cover 65 per cent of their monthly school bus fares. The subsidy level was raised from 60 per cent in January.
The Straits Times
