The Ministry of Education (MOE) has advised schools to “reasonably consider” requests from private bus operators to increase fares for external activities. These ad hoc trips, which include competitions and field trips, are seeing price pressure due to rising fuel costs.
Safeguarding Student Experiences
The ministry stated that this guidance is intended to ensure that students’ learning experiences and school operations are not adversely affected. Unlike regular school bus services paid for by parents, ad hoc trips are funded directly by the schools.
As these costs are typically locked in by contracts, operators are now seeking to revise those agreements to account for the surge in operational expenses.
The Financial Gap for Operators
While the MOE previously announced temporary funding of 13 per cent of fare revenue from April to June for regular school services, this support does not extend to ad hoc trips. This has left a significant gap in coverage for private operators.
The Singapore School Transport Association (SSTA), representing over 40 companies, has informed its members that they may approach schools for contract adjustments. Chairman Edmund Lee noted that while some schools may only offer a 13 per cent increase, operators actually need raises between 30 per cent and 40 per cent to offset diesel spikes caused by the Middle East conflict.
Colin Gan, chairman of the Singapore School & Private Hire Bus Owners’ Association, expressed concern that negotiated rates might fall below 13 per cent. He suggested that prices may need to nearly double to remain commercially viable, noting that drivers often receive a 30 per cent cut of takings for non-routine hours.
Operational Pressures and Risks
Current pricing for a two-way ad hoc school trip now ranges between $100 and $200, depending on distance, timing and bus type. Mr. Voo Wei Keong of Woodlands Transport noted that a one-way trip is now priced closer to $150, which is $50 more than before the fuel hikes.
Some operators are currently absorbing the costs. Mr. Yeo Kah Hua of Aik Shen Bus Service, which operates 25 buses, has used profits from other jobs—such as transporting international school students and workers—to cover the increases for his six ad hoc school contracts.
Still, industry leaders warn that Here’s unsustainable. Mr. Yeo noted that if schools cannot afford higher costs and cancel trips, operators lose revenue, yet they cannot continue operating at a loss by paying out of pocket.
Potential Future Developments
The industry may see a push for more frequent financial reviews. Mr. Edmund Lee has expressed hope for reviews every three months to keep pace with fuel price developments.
If diesel prices continue to rise, some operators may find it impossible to provide services at a loss, which could lead to a possible reduction in available transport for school activities. Schools may be forced to choose between adjusting their budgets or cancelling planned learning journeys.
Frequently Asked Questions
What is the difference between regular and ad hoc school bus services?
Regular school bus services are paid for by parents, whereas ad hoc trips—such as those for competitions and learning journeys—are funded directly by the schools.
Why are bus operators asking for fare increases now?
Operators are facing significantly higher operational costs due to a spike in diesel fuel prices resulting from the Middle East conflict.
How much of an increase are bus operators seeking?
The SSTA suggests a 30 per cent to 40 per cent increase is needed, while the Singapore School & Private Hire Bus Owners’ Association believes prices may need to nearly double to remain commercially viable.
Do you believe schools should prioritize budget stability or the flexibility to increase fares to maintain student field trips?
