School bus operators set to raise fees next year

School bus operators set to raise fees next year
By Seet Sok Hwee | Posted: 13 December 2010 2057 hrs

SINGAPORE : The increase in oil and rubber prices, as well as insurance premiums, has hit school bus operators hard.

As a result, many have decided to increase their fees by between 10 and 20 per cent next year.

Operators say diesel prices have increased by up to 35 per cent since last year, hitting S$1.46 per litre.

Insurance premiums for a small 11-seater bus have more than doubled to about S$2,000. For bigger buses, the increase has been between 35 and 50 per cent over the last year.

Operators say tyre prices have also increased by about 40 per cent over the last year, and are expected to go up further.

The Singapore School Transport Association (SSTA) says given that school bus fees have been maintained at almost the same rate for about three years, it is reasonable to expect operators to raise prices.

Wong Ann Lin, chairman, SSTA, said: "Presently, you can see our neighbourhood charge is only, maybe, about 40-50 dollars, so I think still below cost. For the longer (trips) ... we are charging ... about $150. I think we are still considered as very practical."

- CNA/al

- wong chee tat :)