Update on Fuel Equalisation Fund

Mr Seng Han Thong asked the Minister for Transport (a) if he can provide an update on the Fuel Equalisation Fund; (b) what is the size of the Fund built up since 1992; (c) what has been the utilisation of the Fund since 1992; and (d) how will this Fund fit into the fare review mechanism recommendations.

Mr Lui Tuck Yew: The Fuel Equalisation Fund (FEF) was set up to help the public transport operators manage the impact of fuel price fluctuations. Since the establishment of the Fund in 1992, about $25 million has been drawn down. The current balance in the Fund is about $60 million.

The Fare Review Mechanism Committee (FRMC) has recommended including a new Energy Index component in the fare formula, which has since been accepted by the Government. The FRMC has also noted in its report that the Public Transport Council (PTC) could review the need for the FEF, and I believe the PTC will follow up in due course to undertake such a review with inputs from the public transport operators.